Staff Writer
Santam Limited says it delivered a strong operational performance during the first quarter of 2026 despite facing about R430 million in weather-related and other major claims.
The insurer, which is also listed on the Namibia Securities Exchange (NSX), recorded 9% growth in gross written premiums in its conventional insurance business for the three months ending 31 March 2026.
Santam said growth came from all business units, although international operations had a slower start to the year. Its direct insurance businesses, including MiWay and Santam Direct, continued recording double-digit premium growth.
The group said underwriting performance was affected by major weather events, including floods in northern South Africa and wildfires in the Western Cape.
During the same period last year, the company did not experience major catastrophe losses.
Despite the claims, Santam said its group net underwriting margin remained above the midpoint of its long-term target range of 5% to 10%.
Investment returns weakened during the quarter after fixed interest-rate market movements in March affected insurance fund performance. Santam said its conservative investment strategy helped protect returns on insurance funds at around 2% of net earned premium.
The company’s alternative risk transfer business delivered stable underwriting and fee income results, although weaker fixed-income markets also affected investment margins.
Santam said its shareholder investment portfolio performed below expectations because of weaker fixed-interest market returns. However, results were supported by foreign currency gains compared to losses recorded during the first quarter of 2025.
The insurer’s economic capital cover ratio remained within its target range of 145% to 165% after paying its final dividend in March.
Santam also said its newly established syndicate started underwriting business from 1 January 2026 and secured committed and written business lines worth about US$55 million by the 1 May renewal cycle.
The group expects the syndicate to support premium growth during the rest of the year, although it still expects the business to record an operational loss of about R300 million in 2026 while expanding operations.
Santam further announced that it received a licence to establish a reinsurance branch in India’s Gujarat International Finance Tec-City, also known as GIFT City, as part of its international expansion strategy.
The insurer warned that earnings for the remainder of the year could still face pressure from severe weather events, claims inflation, volatile investment markets and weaker consumer spending linked to rising international oil prices.
Santam said it expects to release its interim financial results for the six months ending 30 June 2026 around 7 September 2026.
