JSE-listed short-term insurer Santam has released robust half-year results, showcasing significant growth in revenue, earnings, and profitability for the six months ended June 2025.
The group announced a 12% increase in revenue, which reached R27.5 billion. Headline earnings per share saw an even stronger performance, climbing 19% to 1,873 cents compared to the same period last year. Reflecting this positive performance, the company’s Board has declared an interim dividend of R5.90 per share for its shareholders.
In an interview, the company’s Chief Executive Officer attributed the strong results to the business “firing on all cylinders,” with growth reported across all segments. He highlighted a particularly strong performance in the direct business unit, stating it is a testament to customers choosing Santam as their “insurer of choice.”
A key indicator of operational success, the group’s underwriting margin, nearly doubled from 6.5% in the first half of 2024 to 11.3% in the current period. The CEO explained that this margin reflects the pure profitability from core underwriting activities. He cited a well-performing in-force portfolio and, crucially, a significant reduction in weather-related claims during the period as the primary drivers behind this improved margin.
The company’s international strategy was also a focus. With 20% of its business already generated outside South Africa, the insurer confirmed that expanding internationally remains a core strategic goal. Its operations, including stakes in India and a reinsurance business, are performing well. The recent launch of a syndicate in London was noted as a key step to writing business across the global insurance landscape.
When asked about the state of the South African consumer, the CEO expressed cautious optimism. He pointed to positive developments such as improved electricity supply, controlled inflation, and decreasing interest rates, alongside an uptick in motor vehicle sales. However, he acknowledged that the consumer “does remain under pressure,” evident in insurance payment lapses. The company stated it is mindful of this pressure and is implementing only moderate premium increases to ensure insurance remains affordable.
Looking ahead to the second half of the year, the company stated it is entering the period with “strong momentum” but remains cautious. The CEO identified weather, specifically the upcoming hail season in parts of the country, as a factor that could have a “material impact” on the full-year results. The company remains cautiously optimistic that its current momentum will carry through the remainder of the year.