Favourable claims environment boosts Santam’s earnings

Santam has reported a stronger-than-expected performance for the year ended 31 December 2025, with double-digit growth of 14.7% in net earned premium and a net underwriting margin of 11.3%, exceeding its long-term target range.

The insurer also saw a 6.4% growth on its gross written premium.

In a Sens release by the group on Monday, South Africa’s largest general insurer said this performance was underpinned by the benefits of underwriting and reinsurance actions implemented over the past two years.

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Headline earnings per share (Heps) grew to 3.743 cents, an 8% increase. Gross claims paid to policyholders fell to R22 billion, down from R28.6 billion in 2024.

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The insurer credited the strong growth to the continued execution of its FutureFit 2030 strategy, which focuses on consolidating Santam’s market-leading position in South Africa and driving international growth.

Market position and strategy

Despite increased competition, a softening rate cycle, and heightened global geopolitical tensions, Santam maintained its leadership position in the broker distribution channel and grew market share in under-penetrated consumer segments and in the direct channel during the period under review.

“2025 has been a defining year for Santam. Our FutureFit 2030 strategy is bearing fruit, we delivered strong financial results and our underwriting discipline and portfolio actions across personal, commercial and specialist lines yielded outstanding results.

“We have remained resolute in our commitment to our intermediary business model while simultaneously investing in direct channels and partnerships to grow our footprint in under-penetrated consumer segments,” says Tavaziva Madzinga, Santam Group CEO.

The board has declared a gross final cash dividend of 1.090 cents per ordinary share.

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Read: Santam says it paid R652m in weather claims last year

The insurer, majority-owned by Sanlam, says volatile weather conditions remain a key insurance risk, which can lead to fluctuations in underwriting margins, but adds it is confident that the underwriting actions it has implemented across all business units leave the group well-positioned for the future.

Key highlights of the results

29.2% return on capital, exceeding the hurdle rate of 24%
14.7% increase in net earned premium
11.3% net underwriting margin
6.4% increase in gross written premium
169% capital coverage ratio
1 090c (2024: 985c) declared as a final dividend per share, up 10.7%

Santam and Sanlam share prices

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