Wrap Text
Reviewed Condensed Consolidated Interim Financial Results for the six months ended 30 June 2022 and cash dividend
Santam Limited and its subsidiaries
("Santam" or "the company" or "the group")
Incorporated in the Republic of South Africa
Registration number 1918/001680/06
ISIN: ZAE000093779
JSE share code: SNT
NSX share code: SNM
A2X share code: SNT
Debt company code: BISAN
REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2022 AND DECLARATION OF ORDINARY
DIVIDEND (NUMBER 135)
KEY FINANCIAL RESULTS
Period ended Period ended Change
30 Jun 2022 30 Jun 2021 %
Gross written premium (GWP) (R million) 24,743 20,070 23%
Ordinary dividend per share (R cents) 462 432 7%
Basic earnings per share (R cents) 425 863 (51%)
Headline earnings per share (HEPS) (R cents) 409 863 (53%)
SALIENT FEATURES
- Conventional insurance GWP growth of 7% to R16.5 billion
- Conventional insurance net underwriting margin of 2.3% (6.7% in June 2021)
- Gross claims paid of R14.2 billion
- KZN flood gross claims amounted to R4.4 billion
- Economic capital coverage ratio of 157%
- Return on shareholders' funds of 7.4%
- Interim dividend per share of 462 cents
KEY PERFORMANCE HIGHLIGHTS
The first half of 2022 was one of the most challenging underwriting periods in Santam's history, compounded by a turbulent
investment market environment. The conventional insurance net underwriting margin of 2.3% ended below the group's target range
of 5% to 10%. Despite these headwinds, the Santam group reported satisfactory gross written premium growth and maintained an
economic capital coverage ratio well within the target range.
Conventional insurance
The conventional insurance business achieved strong gross written premium growth of 7% in the challenging economic
environment.
Adverse weather conditions in the first three months of the year and the devastating floods in the KwaZulu-Natal province
during April 2022 significantly impacted the underwriting results, offset to some extent by a reduction in the COVID-19
related contingent business interruption (CBI) claims provisions.
Alternative Risk Transfer (ART) insurance
The ART business reported satisfactory operating results, positively impacted by excellent growth in fee income despite
weaker investment performance.
Sanlam Emerging Markets (SEM) general insurance businesses
Shriram General Insurance (SGI) in India was impacted by lower sales through the Shriram channels. However, SGI's net
insurance result increased by 21% due to improved claims experience and higher investment returns.
Earnings and headline earnings per share decreased by 51% and 53% respectively. The group declared an interim dividend of 462
cents per share.
DECLARATION OF ORDINARY DIVIDEND (NUMBER 135)
Notice is hereby given that the board has declared a gross interim dividend of 462.00 cents per share (Jun 2021: 432.00 cents
per share), 369.60 cents net of dividend withholding taxation, where applicable, per ordinary share for the six months ended
30 June 2022 to those members registered on the record date, being Friday, 23 September 2022. The dividend has been declared
from income reserves. A dividend withholding taxation of 20% will be applicable to all shareholders who are not exempt.
Share code: SNT
ISIN: ZAE000093779
Company registration number: 1918/001680/06
Company tax reference number: 9475/144/71/4
Gross cash dividend amount per share: 462.00 cents
Net dividend amount per share: 369.60 cents
Issued shares at 1 September 2022: 115 131 417
Declaration date: Thursday, 1 September 2022
Last day to trade cum dividend: Tuesday, 20 September 2022
Shares trade ex dividend: Wednesday, 21 September 2022
Record date: Friday, 23 September 2022
Payment date: Monday, 26 September 2022
Share certificates may not be dematerialised or rematerialised between Wednesday, 21 September 2022, and Friday, 23 September
2022, both days inclusive.
In terms of the dividends tax legislation, the dividends tax amount due will be withheld and paid over to the South African
Revenue Service (SARS) by a nominee company, stockbroker or Central Securities Depository Participant (CSDP) (collectively
Regulated Intermediary) on behalf of shareholders. Shareholders should seek their own advice on the tax consequences
associated with the dividend and are particularly encouraged to ensure their records are up to date so that the correct
withholding tax is applied to their dividend.
SHORT FORM ANNOUNCEMENT
This short form announcement is the responsibility of the directors and is only a summary of the information in the full
reviewed condensed consolidated interim financial statements announcement (full announcement). Any investment decision by
investors and/or shareholders and/or bondholders should be based on consideration of the full announcement that was released
on 1 September 2022 and which can be found on the company's website at
https://www.santam.co.za/media/2687677/2022-interim-financial-statements.pdf. Copies of the full announcement may also be
requested at the company's registered office, at no charge, during office hours at the investor relations department (see
contact details below).
PricewaterhouseCoopers expressed an unmodified review opinion on the reviewed condensed consolidated interim financial
statements in their report dated 31 August 2022. The full report is available on
https://www.santam.co.za/media/2687677/2022-interim-financial-statements.pdf.
The full announcement was released on the JSE's website at https://senspdf.jse.co.za/documents/2022/JSE/ISSE/SNT/HY2022.pdf.
The presentation to analysts can be found on the company's website at
https://www.santam.co.za/media/2687676/2022-june-ias-booklet.pdf.
ADMINISTRATION
INVESTOR RELATIONS
Gloria Tapon Njamo
T: +27 21 915 8228
E: Gloria.TaponNjamo@santam.co.za
NON-EXECUTIVE DIRECTORS
M Chauke, CD Da Silva, MP Fandeso, PB Hanratty, DEH Loxton, MLD Marole, NT Moholi (chairperson), AM Mukhuba, JJ Ngulube,
PE Speckmann
EXECUTIVE DIRECTORS
TC Madzinga (chief executive officer), HD Nel (chief financial officer)
COMPANY SECRETARY
R Eksteen
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd
15 Biermann Avenue, Rosebank 2196
Private Bag X9000, Saxonwold 2132
Tel: 011 370 5000
Fax: 011 688 5216
www.computershare.com
SANTAM HEAD OFFICE AND REGISTERED ADDRESS
1 Sportica Crescent
Tyger Valley, Bellville 7530
PO Box 3881, Tyger Valley 7536
Tel: 021 915 7000
Fax: 021 914 0700
www.santam.co.za
Registration number 1918/001680/06
ISIN ZAE000093779
JSE share code: SNT
NSX share code: SNM
A2X share code: SNT
Debt company code: BISAN
1 September 2022
SPONSOR
Equity sponsor: Investec Bank Ltd
Debt sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited)
Santam is an authorised financial services provider (licence number
3416).
Date: 01-09-2022 07:11:00
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