Top South African insurer on a winning streak

South Africa’s largest short-term insurer expects to report another set of bumper results for its 2024 financial year.

Santam released a trading update on Tuesday, 11 February 2025, that set out the company’s earnings expectations for the financial year that ended 31 December 2024.

The insurer expects its headline earnings per share (HEPS) to increase by between 40% and 60%.

However, its earnings per share (EPS) are expected to remain stable or increase by as much as 20%.

The company explained that the difference between its HEPS and EPS is due to the R705 million one-off gain the company realised in 2023 when it disposed of its stake in SAN JV. 

This one-off gain was included in EPS but excluded from HEPS.

However, Santam’s underlying performance was still strong. The company attributed the increase in earnings to improved underwriting results for its conventional insurance business and earnings growth at its alternative risk transfer businesses. 

It also revealed that the net underwriting margin for its conventional insurance business is expected to be within the long-term target range of 5% to 10% of net earned premiums.

This comes despite significant weather-related catastrophes and other large losses the company faced in 2024. 

The company’s economic capital solvency position is expected to be well within the target range of 145% to 165%.

Santam is expected to release its audited results for the year ended 31 December 2024 on or about 3 March 2025.

These impressive results come after Santam was crowned as one of the best companies to work for by the Top Employer Institute for the ninth consecutive year.

In January this year, Santam was ranked fifth overall in South Africa out of 154 certified organisations.

It also holds the number one position in the insurance sector among 11 certified competitors.

“This progress is a testament to Santam’s sustained efforts in creating an environment where our employees feel valued, supported, and empowered to excel,” Santam’s executive head of human capital, Norah Sehunoe, said.

“At Santam, we firmly believe that investing in our people is central to our mission of delivering outstanding service to our clients.”