Santam (SNT) investor relations material

Executive summary

• Delivered strong full-year 2025 performance, with most key metrics exceeding long-term targets, driven by disciplined underwriting, cost efficiency, and a benign claims environment.

• Strategic focus on strengthening the South African base, expanding internationally, and scaling ecosystem partnerships, with notable progress in all vectors.

• Significant operational advances include the launch of Santam Syndicate 1918 at Lloyd's, expansion in India, and successful integration of MultiChoice and MTN partnerships.

• Improved investment returns across all managed portfolios, exceeding benchmarks.

• Sustainability and risk reduction initiatives remain central, with improved customer experience and top employer rankings.

Financial highlights

• Net income rose 10% to R4,059 million, supported by improved profitability and property portfolio turnaround.

• Top line growth of 14.7% year-over-year, exceeding nominal GDP plus 1%-2% target.

• Underwriting margin improved to 11.3% (2025), up from 7.6% (2024), above the 5%-10% target range.

• Gross written premiums up 6.4%, with strong contributions from MiWay (15% growth) and Partner Solutions (more than doubled, aided by MultiChoice acquisition).

• Total ordinary dividend of ZAR 16.80 per share, up 10.5% from 2024; final dividend of 1,090 cps.

• Float return on insurance funds at 3% of net earned premiums, up from 2.6% in 2024.

• Alternative Risk Transfer earnings increased to R944 million (2024: R781 million).

Outlook and guidance

• Well-positioned to deliver on long-term targets, including GWP growth of CPI + GDP + 1–2% and net underwriting margin of 5–10%.

• Expect underwriting margin to normalize to 5%-10% through the cycle due to increased weather-related catastrophes.

• Return on capital target of 24% remains appropriate, though near-term returns may soften due to normalization of investment returns and start-up losses from Syndicate 1918.

• Syndicate 1918 expected to run at a loss initially (ZAR 300 million projected for 2026) before reaching profitability.

• Focus on scaling international diversification, digital capabilities, and direct channel acceleration.