Santam has reported solid results for the first half of 2024, with an 8.1% increase in gross written premiums and a 7.1% rise in net earned premiums. The group also achieved a 6.5% underwriting margin within its target range of 5%-10% and a 34.9% increase in headline earnings per share. Despite challenges from weather-related claims, Santam paid out R607 million in claims, as well as achieving a 33.6% return on capital and a 34% increase in net income. The group’s MiWay experienced an overall growth of 7%, with its alternative risk transfer business reporting 63% profit growth. The group’s Broker Solutions and Client Solutions businesses further strengthened its premium rates, with the group’s Partner Solutions division reporting strong growth from a low base, driven by the transfer of MTN’s in-force book to the Santam licence. However, group’s Specialist Solutions business experienced a slight decline in volumes due to several large claims in its Crop and Marine businesses. Looking ahead, Santam expects a challenging environment due to economic pressures and the anticipated La Niña weather effect. Nonetheless, the company is optimistic about its FutureFit 2030 strategy and declared an 8.1% higher interim dividend of 535 cents per share.
