Santam (SNT) Q1 2026 TU earnings summary

Operational performance

• Achieved solid performance with gross written premium, underwriting margin, and return on capital meeting long-term targets despite significant weather-related and large claims of about R430 million, mainly from flooding and wildfires.

• Conventional insurance business grew gross written premium by 9%, with strong double-digit growth in Direct businesses, though net earned premium growth was muted due to slower international and specialist segments.

• Group net underwriting margin remained above the mid-point of the 5% to 10% target range despite large losses.

• Negative fixed interest-rate market returns in March 2026 suppressed investment returns on insurance funds, but conservative portfolio positioning limited the impact.

Segment and investment performance

• ART business delivered steady fee income and underwriting results, but lower investment margins due to weaker fixed-interest markets.

• Shareholder investment returns were below expectations, but overall performance matched Q1 2025 due to foreign currency gains offsetting fixed-interest underperformance.

Capital position and prospects

• Economic capital cover ratio remains within the 145% to 165% target range after the final dividend payment.

• Syndicate began writing business in January 2026, with US$55 million in committed and written lines; expected to accelerate premium growth and contribute an operational loss of about R300 million in 2026.

• Granted a licence to establish a reinsurance branch in India's GIFT City, supporting international growth and diversification ambitions.