KEY HIGHLIGHTS OF THE RESULTS:
- 88.7% combined ratio, improving from 92.4% in the prior year
- 29.2% Return on capital
- 10% increase in Net Income
- 6.4% increase in Gross Written Premium
- 14.7% increase in Net Earned Premium
- 19% contribution of International GWP, to total GWP
Santam Limited (JSE:SNT), South Africa’s largest general insurer and the holding company of Santam Syndicate 1918, has reported a strong performance for the financial year ending 31 December 2025, that saw a double-digit growth of 14.7% in Net Earned Premium (NEP) (2024: 9.7%), and an improved combined ratio of 88.7%.
The combined ratio of 88.7% was supported by strong underwriting results across all insurance classes, including a notable increase in profitability of the property class. The combined ratio was lower than the long-term target range of 90% to 95%. These results built on an exceptional first-half momentum, that saw the Group delivering a strong performance across all key metrics, while completing a series of strategic milestones, most notably the establishment and regulatory approval of Santam Syndicate 1918 at Lloyd’s, which opened for business on 1 January 2026.
Santam has attributed the strong growth to the continued execution of its FutureFit 2030 strategy. The focus of the strategy is on consolidating Santam’s market leadership position in the South African and African markets, driving international growth and diversification and ensuring the company embraces data analytics and digital tools that drive excellent client-centric experiences.
“2025 has been a defining year for Santam. Our FutureFit 2030 strategy is bearing fruit, we delivered strong financial results and our underwriting discipline and portfolio actions across personal, commercial and specialist lines yielded outstanding results. We have remained resolute in our commitment to our intermediary business model while simultaneously investing in direct channels and partnerships to grow our footprint in underpenetrated consumer segments,” said Tavaziva Madzinga, the Santam Group CEO.
“Perhaps most significantly, 2025 marks a transformational milestone in our 107-year history, the successful launch of Santam Syndicate 1918 at Lloyd’s. International growth and diversification is a central pillar of our FutureFit 2030 strategy, and Lloyd’s provides us with the most efficient and scalable platform to pursue this ambition. We look forward to collaborating with London market brokers and clients, bringing new business to Lloyd’s, and building a truly global Santam,” he added.
In the year under review, the South Africa market continued to be the most significant contributor to the Santam Group GWP at 81% (2024: 82%), whilst international operations contributed 19% (2024: 18%) to total GWP. 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).
PROSPECTS
The International Monetary Fund has forecast that economic growth conditions in South Africa and globally will improve slightly in 2026. Santam expects global geopolitical developments to continue influencing economic growth conditions and investment market volatility in the markets it operates in.
“From a Santam perspective, our expectation is that better economic conditions should lead to an easing of pressure on personal disposable income, particularly in South Africa, which is our main market. This should support our company’s growth prospects into 2026,” said Madzinga.
“As a Group, we remain confident in our prospects and our potential to deliver enhanced growth and profitability. Our FutureFit 2030 strategy has been tailored to the environment in which we operate, and 2025 demonstrated its effectiveness. We are building a truly global Santam, and we are excited about the opportunities that lie ahead,” he added.