Santam informed shareholders this afternoon that it expects its earnings per ordinary share for the first half of this year to increase by 130% to 150%.
Santam is currently compiling its interim financial results for the six months ended 30 June 2023.
As per JSE listing requirements, the company informed its shareholders that it expects a significant change to its earnings.
Santam expects the following changes to its earnings for the six months ended 30 June 2023, compared to the same period a year ago –
The company attributes these significant increases to improved underwriting results and increased investment income.
“The net underwriting margin is expected to be lower than the long-term target range of 5% to 10% of net earned premiums, impacted by adverse weather conditions, exposure to the Turkey earthquakes, run-off losses in respect of cancelled loss-making business and large fire claims,” the company said.
“This was offset to some extent by the release of the Covid-19 related contingent business interruption claims provisions.”
“Strong returns on local money market and fixed-interest portfolios and decreased foreign bond market volatility were key contributors to the excellent investment performance, supported by foreign currency gains following a weaker rand exchange rate.”
The company expects satisfactory gross written premium growth and said its economic capital position is expected to be within the target range of 145% to 165%.
Santam will release its reviewed results for the six months ended 30 June 2023 on or about 31 August 2023.