Santam's office north of Johannesburg. The short-term insurer's Lloyds syndicate began operations on January 1, 2026, and represents an opportunity for regional and insurance class diversification.
Image: . Simphiwe Mbokazi, Independent Newspapers.
Santam, South Africa’s largest general insurer, saw double-digit growth in net earned premiums (NEP) after it maintained its strong position in the broker distribution channel and grew market share in under-penetrated consumer segments and in the direct channel.
In the year to December 2025, Santam increased NEP by 14,7% versus 9,7% in 2024, its underwriting margin lifted to 11,3% versus 7,6% in 2024, while gross written premium growth (GWP) came to 6,%. The strong operating results arose despite increased competition, a softening rate cycle, and heightened global geopolitical tensions.
Chief Risk Officer Charisse Ras said in an interview that globally the insurance claims environment had generally been benign in 2025 and in 2024, and in South Africa, this was also the case, with, for example, relatively few major extreme weather-related claims, although already in the first few months of this year, there had been floods in Mpumalanga and Limpopo.
The results had built on “exceptional first-half momentum,” with strong performances across all key metrics, while milestones included the establishment and regulatory approval of Santam Syndicate 1918 at Lloyd’s, which opened for business on January 1, 2026.
Ras said there would likely be “a bit of J-curve” on earnings from this initiative as costs were incurred to gain new business in the first year, but the Santam Syndicate 1918 was expected to open significant new opportunities for geographical and insurance class diversification.
Santam also attributed growth to the execution of its FutureFit 2030 strategy. The strategy is to consolidate Santam’s position in the South Africa market, drive international growth and diversification, and ensure data analytics and digital tools are embraced.
“Our FutureFit 2030 strategy is bearing fruit. We have remained resolute in our commitment to our intermediary business model while simultaneously investing in direct channels and partnerships to grow in under-penetrated consumer segments,” said CEO Tavaziva Madzinga.
The South African market continued to be the most significant contributor to the Santam Group GWP at 81% (2024: 82%), increasing by 3% to R35,5 billion, whilst international operations contributed 19% (18%) to total GWP, growing by 13% to R8,4 billion.
Santam expects international growth to be augmented in 2026 by the Lloyd’s-based Santam Syndicate 1918 and through the recent establishment of a reinsurance branch at India’s Gujarat International Financial Services Centre (GIFT City).
Headline earnings per share grew 8% to 3,743 cents. Gross claims paid to policyholders were R22bn (R28.6bn). A final dividend per share of 1,090 cents (985 cents) was declared.
Solid growth in GWP was recorded by the Broker Solutions and Client Solutions businesses, while Partner Solutions experienced strong growth, mainly buoyed by the first-time inclusion, from May 2025, of the Multichoice insurance book.
Miway, the direct insurance subsidiary of Santam, generated 15% GWP growth (8%). This was supported by the inbound and tied agency strategies launched in 2023, as well as the Micashback value proposition launched in 2025.
The Specialist Solutions business saw a marginal decline in GWP due to pricing pressure in the Casualty class and a softening of rates in Corporate Property and Heavy Commercial Vehicles. Santam Re achieved its targeted business volumes from business written through partnerships following a period of restructuring.
Santam’s 11.3% underwriting margin was above the group’s 5% - 10% target range. This was due to strong underwriting results from all insurance classes.
The Broker and Client Solutions businesses benefited from a favourable claims environment, delivering robust underwriting performances, while the Specialist Solutions business delivered another set of superior underwriting results.
Underwriting actions implemented over the past two years significantly improved the risk profile of the group’s in-force book. This created positive earnings momentum, further aided by a benign attritional loss experience and lower weather-related losses, which declined by R600 million compared to 2024, said Ras.
Santam expected global geopolitical developments to continue influencing economic growth conditions in South Africa.
“Our expectation is better economic conditions should lead to an easing of pressure on personal disposable income in South Africa, which is our main market. This should support our company’s growth prospects into 2026,” said Madzinga.
Volatile weather conditions remained a key insurance risk, which could lead to fluctuations in underwriting margins.
Madzinga said they were confident the underwriting actions it had implemented, the continued scaling of Miway's direct model, and the establishment of Santam Syndicate 1918 collectively would position the group for enhanced growth.
The outlook for investment market returns was muted for 2026 following a particularly strong performance in 2025. Investment markets are also susceptible to any adverse change in geopolitical conditions.
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