Tavaziva Madzinga, the Santam Group CEO

Santam Limited (JSE: SNT), South Africa’s largest general insurer, has reported a strong performance for the year ended 31 December 2025, with double-digit growth of 14.7% in Net Earned Premium (NEP) (2024: 9.7%), an 11.3% (2024: 7.6%) net underwriting margin (UWM), exceeding its long-term target range, and a 6.4% Gross Written Premium (GWP) growth.

The strong results built on exceptional first-half momentum, with the group delivering strong performance across all key metrics, while completing a series of strategic milestones, most notably the establishment and regulatory approval of Santam Syndicate 1918 at Lloyd’s, which opened for business on 1 January 2026.

Santam also attributed the strong growth to the continued execution of its FutureFit 2030 strategy. The focus of the strategy is on consolidating Santam’s market-leading position in South Africa, driving international growth and diversification and ensuring it embraces data analytics and digital tools that drive excellent client and intermediary-centric experiences.

During the 2025 financial year, Santam maintained its leadership position in the broker distribution channel and grew market share in under-penetrated consumer segments and in the direct channel. The strong operating results were achieved despite increased competition, a softening rate cycle and heightened global geopolitical tensions.

“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 underpenetrated consumer segments,” said Tavaziva Madzinga, the Santam Group CEO

In the year under review, the South African market continued to be the most significant contributor to the Santam Group GWP at 81% (2024: 82%), increasing by 3% to R35.5 billion (2024: R33.9 billion), whilst international operations contributed 19% (2024: 18%) to total GWP, growing by 13% to R8.4 billion (2024: R7.4 billion). Santam expects international growth to be augmented in 2026 by the Lloyd ’s-based Santam Syndicate 1918 and through the recent establishment of a reinsurance branch at India’s Gujarat International Financial Services Centre (GIFT City).

Headline Earnings Per Share grew to 3 743c (2024: 3 477c), an 8% increase. Gross claims paid to policyholders were R22 billion (2024: R28.6 billion). A final dividend per share of 1 090c (2024: 985c) has been declared.

Conventional Insurance: Growth

Solid growth in GWP was recorded by the Broker Solutions and Client Solutions businesses, while Partner Solutions experienced strong growth, mainly buoyed by the first-time inclusion, from May 2025, of the Multichoice insurance book. Miway, the direct insurance subsidiary of Santam, demonstrated accelerating strategic traction with 15% GWP growth (2024: 8%). This was supported by the inbound and tied agency strategies launched in 2023, as well as the Micashback value proposition launched in 2025.

The Specialist Solutions business saw a marginal decline in GWP due to pricing pressure in the Casualty class and a softening of rates in Corporate Property and Heavy Commercial Vehicles. Following a successful restructuring, Santam Re has achieved its targeted business volumes for 2025 on the back of business written through strategic partnerships.

Conventional Insurance: Underwriting performance

Santam achieved an 11.3% (2024: 7.6%) underwriting margin, which was above the group’s 5% - 10% target range. This was due to strong underwriting results from all insurance classes. The Broker and Client Solutions businesses benefited from a favourable claims environment, delivering robust underwriting performances, while the Specialist Solutions business delivered another set of superior underwriting results.

Underwriting actions implemented over the past two years have also significantly improved the risk profile and rating strength of the group’s in-force book. This has created positive earnings momentum during the 2025 financial year, further aided by a benign attritional loss experience and lower weather-related losses, which declined by R600 million compared to 2024.

Prospects

The International Monetary Fund has forecast that economic growth conditions in South Africa will improve slightly in 2026. Gross Domestic Product growth is expected to reach 1.4% compared to 1.3% in 2025. Global growth in 2026 is estimated to expand by 3.3%. Santam expects global geopolitical developments to continue influencing economic growth conditions in South Africa.

“From a Santam perspective, our expectation is that better economic conditions should lead to an easing of pressure on personal disposable income in South Africa, which is our main market. This should support our company’s growth prospects into 2026,” said Madzinga.

Volatile weather conditions remain a key insurance risk, which can lead to fluctuations in underwriting margins. Santam is, however, confident that the underwriting actions it has implemented across all business units, the continued scaling of Miway's direct model, and the establishment of Santam Syndicate 1918 collectively position the Group for enhanced growth and profitability through the FutureFit 2030 strategy period. The outlook for investment market returns is muted for 2026 following a particularly strong performance in 2025. Investment markets are also susceptible to any adverse change in geopolitical conditions.

“As a group, we remain confident in our prospects and our potential to deliver enhanced growth and profitability. Our FutureFit 2030 strategy has been tailored to the environment in which we operate, and 2025 demonstrated its effectiveness. We are building a truly global Santam, and we are excited about the opportunities that lie ahead.” added Madzinga