SNT - Santam Limited - Operational update to shareholders following its annual
SNT
SNT
SNT - Santam Limited - Operational update to shareholders following its annual
general meeting 2 June 2010
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 conditions remain satisfactory at acceptable margins after
the improvement experienced in the second half of 2009. The absence of multiple
large industrial claims in the corporate business unit to date as well as an
improvement in the portfolio management business saw a welcome respite in these
areas, mainly due to several initiatives to address underwriting and claims
activities. Commercial property claims increased as a result of a higher
frequency of fire claims as well as flooding claims following the higher than
normal summer rainfall in the northern parts of the country. 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 was in line with the equity market
movements but the investment result has been positively impacted by the
accounting treatment of the derivative fence structure. Interest rate returns,
albeit lower than last year, continue to contribute positively to income. The
group`s solvency margin remains at the top end of the target range of 35% to
45%.
Headline earnings continue to be susceptible to the inherent volatility of
underwriting and investment activities.
The next set of results will be the interim results for 2010 to be published on
1 September 2010.
CAPE TOWN
2 JUNE 2010
Sponsor:
Investec Bank Limited
Date: 02/06/2010 11:18:02 Produced by the JSE SENS Department.
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