Santam is beginning to see the benefits of its international expansion, with its United Kingdom operations and investment in India contributing to the insurer’s financial performance.
A key highlight is Santam Syndicate 1918, which began underwriting insurance in the UK on 1 January 2026.
The syndicate secured R1.3 billion in premium income during its first six months. However, accounting rules mean the revenue must be recognised over a 12-month period.
As a result, Santam reported R461 million in gross written premiums and R87 million in net earned premiums for the period. The syndicate recorded an underwriting loss of R230 million, which Santam expects to be temporary as the business matures.
Santam Expands In India
Santam has also strengthened its presence in India by opening an office in GIFT City on 1 April 2026.
The move gives the insurer greater access to India’s growing insurance market, where it already holds a 14% stake in Shriram General Insurance.
Shriram delivered strong results, with gross written premiums increasing by 20% and underwriting margins improving from 1.7% to 5.9%.
Santam also recorded a R685 million fair value gain following changes linked to Sanlam taking control of Shriram. This was partly offset by a R175 million foreign exchange loss.
South African Operations Face Pressure
While international operations provided support, Santam’s South African insurance business faced challenges during the period.
Its underwriting margin declined from 11.3% to 8.1%, mainly due to severe weather events and other large losses. Weather-related losses in the Western Cape alone reached R1.5 billion.
Despite the pressure, Santam’s overall net income increased 7% to R2.2 billion, while headline earnings per share rose 7.1%.
The insurer increased its interim dividend by 10.2% to R6.50 per share, highlighting the strength of its overall financial performance.
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