Santam pays record claims of R24.5 billion
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KEY HIGHLIGHTS OF RESULTS: Growth of 5% in conventional insurance gross written premiums to R32.7 billion
Conventional insurance net underwriting margin of 8%
Net investment income attributable to shareholders of R1.5 billion
Economic capital coverage ratio of 169% (target range of 150% to 170%)
Headline earnings per share increased to 2 495 cps (2020: 905 cps)
R24.5 billion paid in gross claims to policyholders, the highest in company history
R1.1 billion gross Agriculture claims paid and reserved following adverse weather conditions
Business interruption gross claims payments pass R3 billion mark
A final dividend per share of 790c (2020: 0c), and a special dividend per share of 800c declared. Santam, South Africa’s largest short-term insurance group, today reported that it paid R24.5 billion in claims last year as businesses and individual clients suffered significant losses in an economy struggling to recover from the effects of the pandemic and other setbacks.The pay-out was the highest in Santam’s history. The R24.5 billion included catastrophe claims from large-scale fires, weather events that significantly affected agriculture and floods in Gauteng and KwaZulu-Natal. At the same time, claims on the motor book and personal lines returned closer to pre-pandemic levels.The company also played a key role in processing a large number of state-insurer SASRIA’s claims following the July 2021 civil unrest. Santam facilitated payment of R1.1 billion in terms of its mandate with SASRIA.Presenting the company’s financial results for the year ended 31 December 2021, Group CEO, Lizé Lambrechts said Santam had successfully met considerable challenges in reporting strong operating results for the period.She said the company’s conventional insurance business achieved acceptable gross written premium (GWP) growth of 5% (2020: 5%) in a depressed economic environment and a net underwriting margin of 8.0% (2020: 2.5%), which is at the top-end of the group’s target range of 4% to 8%.Headline earnings increased to 2 495 cps compared to 905 cps for the year ended 31 December 2020. A return on capital (ROC) of 28.5% was achieved, well above the 2021 ROC target of 20% and the medium-term target of 24%. The economic capital coverage ratio at 31 December 2021 was 169% (2020: 161%) – at the top end of the target range of 150% to 170%.Reflecting on the record R24.5-billion paid in gross claims, Lambrechts said: "Over the […]
