Santam reported approximately R430 million in weather-related and other large claims, net of reinsurance recoveries, for the three months to the end of March, driven primarily by flooding in northern South Africa and wildfires in the Western Cape.
This was compared with the first quarter of 2025, which benefited from the absence of significant loss events, Santam said in an operational update on 18 May 2026.
The insurer said it has not received notification of significant claims from flooding in the Western Cape in April 2026 but anticipates significant claims arising from severe weather in May, although the loss impact cannot yet be accurately assessed.
Despite the elevated claims, Santam reported that its net underwriting margin remained above the mid-point of its 5%-to-10% target range for the period.
Gross written premium in the conventional insurance business increased 9% year-on-year, with contributions from all business lines, although the international portfolio experienced a slower start to the year. The group’s direct operations, including Miway and Santam Direct, delivered double-digit premium growth.
Growth in net earned premiums was more subdued, reflecting weaker momentum in Santam Specialist Solutions in the second half of 2025 and a slower start to the year for Santam Re, which was also affected by foreign currency translation differences on prior-year premiums.
The group said partnership business concluded in the first quarter is expected to support improved growth at Santam Re for the remainder of the financial year.
Investment returns were negatively affected by fixed-interest-rate market performance in March 2026, compared with stronger returns in the prior-year period. Returns on insurance funds were about 2% of net earned premium for the period.
In the Alternative Risk Transfer segment, Santam reported steady fee income and underwriting results, with overall performance offset by lower investment margins resulting from weaker fixed-interest-rate market performance.
Returns on shareholder capital portfolios were described as below expectations, although foreign currency gains offset weaker fixed-interest-rate performance, resulting in an outcome broadly in line with the first quarter of 2025.
Santam’s economic capital cover ratio remained within its 145%-to-165% target range following the payment of the final dividend in March 2026.
The group’s insurance syndicate at Lloyd’s, launched on 1 January 2026, had written and committed lines of about US$55m by the 1 May renewal cycle. Santam said the syndicate is expected to contribute strongly to premium growth during the remainder of the financial year, although it is still projected to generate an operational loss of about R300m in 2026.
The company said its results for the six months to the end of June 2026 are expected to be released on or about 7 September 2026.
