Santam's share price surges 5% following strong operational update

Short term insurer Santam’s share price surged over 5% on Tuesday afternoon after the release of an operational update for the nine months to September 30 showing the group continues to deliver a strong performance since the end of June this year.

Results for the period exceeded the longer-term targets for all key financial performance indicators, the directors reported. Highlights include double-digit growth in gross written and net earned premiums, an underwriting margin above the upper end of the 5% to 10% target range and annualised return on capital in excess of 30%, Santam’s directors said.

Net income growth was in line with the first half. The share price was trading 5.19% higher at R438.81 late in the afternoon.

The conventional insurance business grew net earned premium growth by 16%, with solid contributions from all major businesses except for Santam Specialist Solutions.

MiWay's growth accelerated, achieving solid double-digit growth in gross written and net earned premiums. Business insurance continued to perform “exceptionally well”, with personal lines growth accelerating since the end of June 2025.

Santam Re’s growth was supported by significant business from strategic partnerships. Broker, Client and Partner Solutions recorded good growth, in line with the first half of the 2025 financial year. Within Specialist Solutions, competitive conditions negatively impacted growth.

Gross written premium increased by 10%, with solid growth across all major insurance classes, excluding the impact of the shift between insurance classes from the portfolio restructuring in Santam Re.

The improvement in the underlying rating strength and profitability of the in-force book, combined with a favourable claims environment, benefited the underwriting performance.

Favourable interest-rate market returns, and outperformance of benchmarks supported investment returns earned on insurance funds, which amounted to 3% of net earned premiums, exceeding the comparable period.

The Alternative Risk Transfer (ART) business reported good operating results, with growth in fee income, underwriting results and investment margins.

The investment return earned on the capital portfolios was below expectations primarily due to foreign currency translation losses on foreign exposure in the portfolio, including the investment in Shriram General Insurance, resulting from the strengthening of the rand since December 31, 2024.

In July 2025, Santam received in-principle approval by the Lloyd's Council to launch a Santam syndicate, subject to meeting the start-up operational requirements of Lloyd's. Final approval and "permission to underwrite" by Lloyd's was expected towards the end of 2025.

The Santam Syndicate would be aimed at enhancing Santam's international growth and diversification. Good progress was being made in the operationalisation of the Santam Syndicate in preparation for final approval.

The group experienced limited significant claims in the period. The conventional insurance underwriting performance for the remainder of the year, however, remained susceptible to adverse weather-related and other significant loss experience.

Additionally, investment market volatility could potentially impact the investment returns earned on insurance funds and the shareholder capital portfolio.

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