South Africa's biggest short-term insurer Santam has said that it had continued to deliver a strong performance since the end of June 2025, with the results for the first nine months of this year (9M2025) exceeding the longer-term targets for all key financial performance indicators.
In an operational update, Santaim said that its financial highlights include double-digit growth in gross written and net earned premiums, an underwriting margin above the upper end of the 5% to 10% target range and annualised return on capital in excess of 30%. Net income growth was in line with the performance for the first half of the year.
Conventional insurance business
The conventional insurance business achieved net earned premium growth of 16%, with solid contributions from all major businesses except for Santam Specialist Solutions. Santam’s subsidiary MiWay’s growth continued to accelerate, with the business achieving solid double-digit growth in gross written and net earned premiums.
Business insurance continued to perform exceptionally well, with personal lines growth accelerating since the end of June 2025. Santam Re also achieved excellent growth, supported by significant business from strategic partnerships.
Broker, Client and Partner Solutions recorded good growth, in line with the performance for the first half of the 2025 financial year.
Within Specialist Solutions, competitive conditions negatively impacted growth.
Gross written premium increased by 10%, with solid growth across all major insurance classes, excluding the impact of the shift between insurance classes from the portfolio restructuring in Santam Re.
The improvement in the underlying rating strength and profitability of the in-force book, combined with a favourable claims environment, benefited the underwriting performance for the period. The net underwriting margin remained above the 5% to 10% target range, in line with the margin reported for the first half of the year. Favourable interest-rate market returns and outperformance of benchmarks supported investment returns earned on insurance funds, which amounted to 3% of net earned premiums, exceeding the comparable period.
Alternative Risk Transfer (ART)
The ART business segment reported excellent operating results, with substantial growth in fee income, underwriting results and investment margins.
Shareholder investment returns
The investment return earned on the Group's capital portfolios was below expectations and that of the comparable period. This was primarily due to foreign currency translation losses on the foreign exposure in the portfolio, including the investment in Shriram General Insurance, resulting from the strengthening of the rand since 31 December 2024.
Prospects
In July 2025, Santam received in-principle approval by the Lloyd’s Council to launch a Santam syndicate (the “Santam Syndicate”), subject to meeting the pre-determined start-up operational requirements of Lloyd’s. Final approval and “permission to underwrite” by Lloyd’s are expected towards the end of 2025.
The establishment of the Santam Syndicate is aimed at significantly enhancing Santam’s international growth and diversification ambition. Good progress is being made in the operationalisation of the Santam Syndicate in preparation for final approval.
The Group experienced limited significant claims in the period. The conventional insurance underwriting performance for the remainder of the year, however, remains susceptible to adverse weather-related and other significant loss experience. Additionally, investment market volatility could impact the investment returns earned on insurance funds and the shareholder capital portfolio. These factors may impact earnings growth for the full year.
Santam said that profitable growth remains a key focus area for all businesses, given its FutureFit 2030 strategy, the strength of its client and intermediary relationships and a distribution footprint, which position the group well to maintain solid financial performance as it focuses on enhancing international growth and diversification.