Staff Writer
Santam has reported a stronger first-half performance, with earnings per share rising 7% and its interim dividend increased by 10% despite a deterioration in claims experience and higher weather-related losses.
The group insurance revenue increased 2% to R27.96 billion for the six months ended 30 June 2026, from R27.50 billion in the corresponding period last year.
Basic and headline earnings per share both increased to 2,006 cents from 1,873 cents, while the company declared an interim dividend of 650 cents per share, compared with 590 cents previously.
Santam said its conventional insurance business recorded net earned premium growth of 6% to R18.9 billion. However, the underwriting margin declined to 8.1% from 11.3% a year earlier.
The lower underwriting margin was largely attributed to a deterioration in claims experience, particularly weather-related catastrophes and other large losses.
Santam reported weather-related catastrophe and other large losses of R1.5 billion during the period, compared with just R144 million in the first half of 2025.
The company said most of the large losses were related to fires, highlighting what it described as the increasing frequency and severity of weather-related events.
Its alternative risk transfer (ART) business continued to perform strongly, with profit before tax increasing 12% to R466 million from R417 million.
The group’s annualised return on shareholders’ funds stood at 27%, down from 33.2% in June 2025, while its economic capital coverage ratio was 167%, compared with 169% at the end of December 2025.
The board declared the 650-cent gross interim dividend from income reserves. After the 20% dividend withholding tax applicable to non-exempt shareholders, the net dividend will be 520 cents per share.
Santam said the results demonstrate progress in executing its FutureFit 2030 strategy, while the higher dividend and earnings reflected the group’s continued financial performance despite increased claims volatility.
