Top South African insurer booming

Santam’s strong premium growth, strategic market expansion, improved underwriting, solid investment returns, and disciplined cost management all contributed to the insurer’s highly successful 2024 financial year.

Santam, South Africa’s largest short-term insurer, released its results for the year through December 2024 on Monday, 3 March 2025.

These results revealed that Santam’s gross written premium increased by 10,5%, exceeding the insurer’s long-term targets.

In addition, its underwriting margin improved significantly to 7.6%, up from 3.5% the year prior.

This was driven, in part, by Santam’s property portfolio, which turned profitable in this period after years of losses due to higher premiums and better risk selection.

In addition, the company said adjustments it made in pricing and policy conditions helped to offset the impact of high claims from extreme weather events.

Santam’s net income grew by 13% in the period, primarily due to the insurer’s improved underwriting performance and investment returns.

The insurer’s return on capital was 32%, surpassing its target of 24%. The insurer attributed this to favourable market conditions internationally and locally.

Overall, Santam’s total net income grew to R3.68 billion, up over 13% from R3.25 billion the year prior.

Its conventional insurance profit was up 58% to R4.6 billion, and profits in its alternative risk transfer business grew by 51%.

Another boon for Santam in this period was its strategic expansions over the past year.

Santam’s business outside South Africa grew by 28%, now making up 18% of the insurer’s total gross written premium.

It also allowed the company to record a new business win, with its MTN device insurance sales performing better than expected and exceeding the original business plan.

The insurer also reported a strong turnaround in MiWay, which achieved a double-digit underwriting margin.

However, Santam reported that its capital coverage ratio was 166%, slightly above its 145% to 165% target range.

The insurer also focused on efficient expense and capital management in this period. It reported that management expenses remained well-controlled.

Santam reported a final dividend of 985 cents per share, up 8.8% from the previous year. This brings the insurer’s total ordinary dividend distributions to 1,520 cents per share.