SNT - Santam Limited - Annual General Meeting - Operational update to
SNT
SNT
SNT - Santam Limited - Annual General Meeting - Operational update to
shareholders
SANTAM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1918/001680/06)
(Share Code: SNT & ISIN: ZAE000093779)
Annual General Meeting - Operational update to shareholders
This serves as a general communication to Santam shareholders with regards
to the business environment for the year to date.
Overall underwriting performance is under pressure. During the period we
again experienced several large industrial fire related claims which
adversely affected the company`s corporate and commercial underwriting
margins. In line with industry experience the claims frequency and cost
increased significantly on our motor book. The portfolio management business
remains under pressure and several initiatives are under way to further
improve the situation. Overall performance of the specialist classes remains
highly satisfactory. Premium growth to date has been healthy but we expect
the general economic slowdown to have some further impact on premium growth
and our ability as an industry to achieve an appropriate rate for the risk
assumed.
The performance of the investment portfolio has been under pressure during
the period as a result of the volatility of the local markets. Favourable
interest rate returns, albeit lower than last year, had a positive impact on
cash related investments and to some extent negated the underperformance of
the equity portfolio. The group`s solvency margin comfortably remains within
the approved band of 35% to 45%.
Headline earnings continue to be vulnerable to the inherent volatility of
underwriting and investment activities.
The next set of results will be the interim results for 2009 to be published
on 26 August 2009.
CAPE TOWN
27 MAY 2009
Sponsor:
Investec Bank Limited
Date: 27/05/2009 10:43:08 Produced by the JSE SENS Department.
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