| Wed 22 Jan 2003, 9:43 | | Santam Limited - Media Release |
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SANTAM LIMITED - MEDIA RELEASE
MEDIA RELEASE
SANTAM LIMITED
Share code : SNT
ISIN : ZAE000006854
22 JANUARY 2003
Santam obtains British niche insurer
Santam Limited on Monday (20 January 2003) took full, unconditional, control of
the British niche insurer Westminster Motor Insurance Association Ltd, which the
company obtained for GBP23, 3 million, (Dr) Johan van Zyl, chief executive of
Santam, announced.
"The transaction, which is being financed from our own resources, is an
important strategic step for expanding our income base, especially in view of
the limited opportunities for organic growth in the South African market," said
Van Zyl.
"Obtaining an insurer that performs well in the competitive British market will
have beneficial results for Santam and is perfectly in line with our goals of
adding further value for our stakeholders."
Westminster, which specialises in insurance for taxis and private motor rental
companies, achieved GBP24 million in gross premium income in 2002 and declared
an underwriting profit of GBP4,3 million.
"The acquisition price represents a premium over book value of some 6%," said
Van Zyl. "Because the transaction was finalised after our financial year-end, it
will have no impact on Santam`s results for 2002. Given the level of
profitability and the purchase price, we expect it to contribute positively to
Santam`s profitability within this year."
With a total operating ratio (sum of losses and expenses) of 88.1% for 2001,
Westminster was named one of the top performers in its sector for the third
consecutive year last year in a general survey of British motor insurers.
Similarly, in the 2002 edition of the noted Who`s Who of British Business
Excellence, British analysts identified Westminster as one of the fastest-
growing companies in the UK.
Santam announced in August 2002 that it was engaged in negotiations to obtain a
British specialist insurer. Once Westminster shareholders had given the green
light for the transaction to go ahead, it remained subject to approval from the
British regulatory authorities. This approval was granted earlier this month.
"Westminster has been in operation since 1948 and is therefore a well-
established company and prominent in its sector. In view of this we have decided
that the company will continue to operate under its existing trade name," said
Van Zyl.
At the same time Van Zyl announced that (Mr) Koos van Tonder, executive head of
Santam International, has been appointed as chief executive of Westminster and
(Mrs) Lizet Murray, previously Santam`s head: risk and compliance services, as
its financial chief. Both will be based in London.
"It is important to us that existing knowledge of and expertise concerning the
British industry residing within Westminster be retained. With a view to this,
virtually the full staff complement of some forty people will be retained.
"The only exceptions are the current managing director, (Mr) Trevor Owen, who
will however remain in the service of Westminster as a consultant, and the
financial chief, (Mrs) Penny Foley, who is retiring."
Ends
Released by Santam Corporate Communication
For more information, contact:
Machiel Reyneke: executive head: finance, Santam Ltd. Tel: (021) 915 7546 Cell:
082 881 5665
Egbert de Waal, communication manager, Santam Ltd. Tel: (021) 915 7486. Cell:
082 467 4325
Date: 22/01/2003 07:00:02 AM Produced by the JSE SENS Department
