Santam ups dividend as earnings climb 18.7%

JSE-listed short-term insurer Santam recorded an 18.7% rise in headline earnings per share for the six months ended 20 June 2025, it announced on Sens on Monday morning.

An interim dividend of 590 cents per share – 10.3% higher than the prior year – was declared.

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The group’s share price firmed 1.53% to R444.70  at around 11:30 on Monday.

Santam said it exceeded its long-term targets across all key performance indicators. The underwriting margin almost doubled from 6.5% in the prior period to 11.3%, while the annualised return on capital reached 33.2%, well above the 20% target.

Gross written premium increased 10% and conventional net earned premium improved 16% in the period under review.

Santam Group CEO Tavaziva Madzinga said the insurer’s strong performance “belied” South Africa’s lacklustre economic growth and “no meaningful change” in employment levels and disposable income.

“Despite these challenges, South Africa remains the company’s key market with an 80% contribution to the group’s gross written premium,” he adds.

The group expects economic growth conditions to remain vulnerable to global geopolitical developments and does not anticipate a marked improvement for the remainder of the 2025 financial year.

Santam, however, foresees an “easing of pressure” on disposable incomes and will focus on higher growth areas in direct distribution, new segments through partnerships, and its international expansion strategy.

Madzinga noted that the group remains cautious as volatile weather conditions pose a key insurance risk, which may cause volatility in underwriting margins. He added that the group’s underwriting actions position it well to manage such risks.

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