SNT - Santam Limited - Operational update to shareholders following its board
SNT
SNT
SNT - Santam Limited - Operational update to shareholders following its board
meeting held 1 December 2010
SANTAM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1918/001680/06)
(Share Code: SNT ISIN: ZAE000093779)
OPERATIONAL UPDATE TO SHAREHOLDERS FOLLOWING ITS BOARD MEETING HELD 1 DECEMBER
2010
Board Meeting - Operational update to shareholders
This serves as a general communication to Santam shareholders with regards to
the operating environment for the year to date.
Overall underwriting performance remains very pleasing with all major business
units performing well. The turnaround of both the corporate and portfolio
management business units achieved in the first half continued for the year to
date. The results of the former were positively influenced by the low
frequency of large industrial accident and fire-related claims. Crop insurance
results are under pressure due to weather related claims. In general rates
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 strengthening of
equity markets and the investment result has also been positively impacted by
the accounting treatment of the derivative fence structure that existed at 31
December 2009. Following payment of the interim and special dividend the
Company retained its equity portfolio intact and hedged approximately 60% of
its equity exposure progressively by means of derivative fence structures from
early September onwards. Interest rate returns, albeit lower than last year,
continue to contribute positively to income mainly due to higher cash and
float levels. 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 next set of results will be the audited abridged financial results for the
2010 financial year, to be published on 1 March 2011.
CAPE TOWN
1 December 2010
Sponsor:
Investec Bank Limited
Date: 01/12/2010 15:23:02 Produced by the JSE SENS Department.
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