South African insurance group Santam reported a 7% rise in first-half 2026 net profit to ZAR 2.2 billion, driven by a 10% increase in gross written premiums to ZAR 25.1 billion, even as weather-related losses totaled ZAR 1.5 billion.
Underwriting margin remained within the company’s 5% to 10% target range at 8.1%, down from 11.3% in the prior period’s catastrophe-benign year. Net earned premiums rose 6% year-over-year, while the interim dividend increased 10.2% to ZAR 6.50 per share, extending a 35-year streak of payments.
Weather-related and large losses surged to ZAR 1.5 billion from ZAR 144 million in H1 2025, reflecting heightened catastrophe activity. Management attributed ZAR 200 million in savings—13% of net catastrophe losses—to improved geocoding and underwriting actions. Excluding weather losses and the maiden underwriting loss from Syndicate 1918, the underlying underwriting margin was projected at 15.7%.
International operations contributed 23% of gross written premiums, up 25% year-over-year, while alternative risk transfer earnings reached ZAR 466 million. Return on capital annualized eased to 27% from 31%, remaining above the 24% hurdle target, while float return improved to 2.9% of net earned premium.
Santam’s Lloyd’s platform, Syndicate 1918, generated ZAR 461 million in gross written premium in its first six months, with an approved stamp capacity of GBP 375 million. The syndicate is expected to achieve profitability in the second half of 2027 on an underwriting-year basis, having secured ZAR 1.3 billion in incremental premium commitments.
Chief Executive Tavaziva Madzinga highlighted disciplined underwriting and resilience amid elevated claims, while Chief Financial Officer Wikus Olivier noted that the group met or exceeded long-term financial targets despite the weather impact. Management warned that Super El Niño conditions in H2 2026 could heighten fire and agriculture-related claims risks.
Santam’s shares were down 0.61% at ZAR 41,242 in recent trading, within a 52-week range of ZAR 36,011 to ZAR 46,172.
