SNT - Santam Limited - Operational Update to Shareholders Following Its Board
SNT
SNT
SNT - Santam Limited - Operational Update to Shareholders Following Its Board
Meeting Held 25 November 2009
SANTAM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1918/001680/06)
(Share Code: SNT & ISIN: ZAE000093779)
Board Meeting - Second bi-annual operational update to shareholders
This serves as a general communication to Santam shareholders with regards to
the business for the year to date.
Overall underwriting conditions remain challenging, although we have achieved an
improvement in margins during the second half to date. The absence of very large
industrial claims in the corporate business unit during this period contributed
largely to this improvement. The portfolio management business remains under
pressure, but we are seeing some improvement in results following several
initiatives to address underwriting and claims activities. Rates across the
board remain soft and premium growth is expected to be in line with the overall
industry experience.
Performance of the investment portfolio remains positive, and in line with the
strengthening of equity markets. Interest rate returns, albeit lower than last
year, continue to contribute positively to improved income. The group`s solvency
margin comfortably remains within the target range of 35% to 45%.
Headline earnings continue to be susceptible to the inherent volatility of
underwriting and investment activities.
The transaction to acquire 100% of Emerald Insurance Company and Emerald
Underwriting Managers, as reported to shareholders in August, is progressing
well. All regulatory approvals have been obtained but final agreements and Super
Group shareholder approval are still outstanding.
The next set of results will be the audited abridged financial results for the
2009 financial year, to be published on 03 March 2010.
CAPE TOWN
25 November 2009
Sponsor:
Investec Bank Limited
Date: 26/11/2009 15:22:03 Produced by the JSE SENS Department.
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