KEY HIGHLIGHTS OF THE RESULTS:
- 91.9% combined ratio, (June 2025: 88.7%) reflecting exceptional weather-related catastrophe and large losses
- 27% annualised return on capital
- 10% increase in Conventional Gross Written Premium
- 6% increase in Conventional Net Earned Premium
- 23% contribution of International GWP to total GWP
Santam Limited (JSE:SNT), South Africa’s largest general (property and casualty) insurer and the parent company of Santam Syndicate 1918 (the Syndicate), has recorded a solid performance for the half-year period ended 30 June 2026, with growth of 6% in Net Earned Premium (NEP) and a combined ratio of 91.9% (2025: 88.7%).
The results were achieved despite a challenging macroeconomic environment, investment market volatility and significant weather-related catastrophe (CAT) events, and other large losses in the South African market.
South Africa remains the group’s anchor, contributing 77% of GWP, with domestic market premium up 6.4% to £805 million. From that position of strength, Santam is deliberately diversifying, with GWP from international business at 23% (June 2025: 20%), a steady progression towards attaining the 30% as envisioned in the Group’s FutureFit 2030 strategy. The successful launch of the only African-headquartered participant, Santam Syndicate 1918 on 1 January 2026 and a reinsurance branch at India’s Gujarat International Financial Services Centre (GIFT City) on 1 April 2026 have the potential to transform the group into a global multi-national insurer with substantially enhanced growth prospects.
“The Syndicate had a strong start, concluding new incremental business with an ultimate Estimated Premium Income of £59 million up to 30 June 2026. A revised syndicate plan for the 2026 underwriting year was approved with additional premium capacity of £67 million, to allow for additional business generation during the year to date. We have also made good progress with the vesting of operational processes and the appointment of key staff, including executive management, key underwriters and Sam Geddes as Chief Executive from 1 June 2026,” said Tavaziva Madzinga, the Santam Group CEO.
The standout is the quality and stability of the underwriting result. All insurance classes achieved good underwriting results, with the property portfolio remaining profitable on an underlying basis. The combined ratio nonetheless moved to 91.9% (2025: 88.7%), a higher ratio reflecting a less profitable period as the group absorbed exceptional weather-related catastrophe and other large losses of £68 million, net of reinsurance (2025: £6 million), together with a maiden underwriting loss of £10 million from the Syndicate arising from the delayed recognition of revenue under IFRS.
“This is a high-quality, resilient result delivered in a demanding environment,” said Madzinga.
“Against a backdrop of subdued economic growth, pressure on consumers and investment market volatility and after one of the most severe weather-loss periods we have seen, we held our underwriting margin above the mid-point of our target range. This reflects disciplined underwriting, sound expense management and continued strategic progress of our FutureFit 2030 strategy. More importantly, key performance indicators remained in line with or exceeded long term targets,’ said Madzinga.
“Our steadfast focus on strategic execution enabled us to successfully navigate a challenging operating environment during the period,” he added.
PROSPECTS
Santam expects the operating environment to remain challenging in the second half of the year, with low economic growth, pressure on disposable income, investment market volatility and the continued rate softening.
Santam Syndicate 1918 has additional approved Lloyd’s capacity and a promising pipeline for the remainder of 2026 with the associated earnings expected to be recognised largely in 2027 and 2028.
“As a Group we remain focused on pricing discipline, risk selection, expense efficiencies and execution of the FutureFit 2030 strategy. We are also confident in the group’s prospects and the potential to deliver enhanced growth and profitability,” said Madzinga.