Operational update : COVID-19 Pandemic SANTAM LIMITED (Incorporated in the Republic of South Africa) Registration number: 1918/001680/06 (JSE Share Code: SNT & ISIN: ZAE000093779) NSX share code: SNM (‘Santam’ or the ‘Company’) OPERATIONAL UPDATE: COVID-19 PANDEMIC IMPACT ON OPERATIONS Shareholders are referred to the State of Disaster declared by the State President on Sunday, 15 March 2020 and his expansion of this declaration, on Monday, 23 March 2020, into a national lockdown with effect from midnight on Thursday, 26 March 2020 until midnight on Thursday, 16 April 2020. The Regulations published on 25 March 2020 in terms of the Disaster Management Act, 2002 have categorised insurance as an essential service. During the lockdown period, the Group will operate on a limited staff basis, with only core critical staff on site. A significant number of staff are enabled to work remotely from their homes. Our first priority is to ensure the safety of our people. We will adhere to all directives in respect of hygienic conditions and the limitation of exposure. The Group has maintained open communication channels with its key stakeholders on the impact of the COVID-19 pandemic, including our employees, clients, intermediaries, suppliers and regulators. We are confident that we will be able to continue to service our clients and other stakeholders during this challenging period. FINANCIAL IMPACT Santam Limited Santam is adequately capitalised to accommodate this period of excessive market volatility and retains a significant amount of liquid assets. It will therefore be able to meet all of its current financial obligations as and when they fall due. Shareholders are reminded that conditions remain fluid and uncertain. The financial position of the Group reflected in this announcement will consequently change over time. The Company is in the process of reviewing all relevant policy wordings to assess the potential insurance exposure relating to the COVID-19 pandemic and to determine how Santam’s policies may respond to claims made. A high sense of urgency is being applied to conclude on the extent of Santam’s potential exposure. Saham The impact of COVID-19 on general insurance claims is, among others, dependent on governments’ response to the pandemic. Some governments are considering requirements for insurers to pay medical costs even if this is not covered under the policy contracts, or to contribute voluntarily to relief funds. Despite limited contractual exposure in many instances, measures implemented by governments may therefore still have an impact. The weaker equity markets in Morocco and Cote d’Ivoire have a negative impact on investment variances in the life portfolios. Return on insurance funds held in general insurance portfolios are also negatively affected given the equity exposure within the asset mix. COVID-19 is likely to result in a further deterioration of economic conditions in Lebanon, aggravated by the sovereign debt defaults in March 2020, which may require additional credit provisioning to be recognised. Outlook The impact of COVID-19 will negatively impact the Group’s growth prospects for 2020, both in terms of the South African business and premium flows from outside South Africa. Significant action is being taken to contain operational costs in the current challenging economic environment. Equity, interest rate and currency markets are expected to remain volatile in the foreseeable future. The full financial impact of the COVID-19 pandemic on the Company can obviously only be determined after the lockdown has been lifted, there is a return to normality and its consequences have been properly assessed. Shareholders will be kept appraised of developments in this regard. TRADING CONDITIONS FOR THE FIRST TWO MONTHS TO 29 FEBRUARY 2020 Before the onset of the pandemic, the Group made a solid start to the year with strong gross written premium growth in the Santam Specialist Business and MiWay. The Group’s net underwriting results benefitted from a favourable claims environment. The underwriting margin of the former Saham general insurance portfolio showed pleasing improvement compared to the 2019 full-year results and higher investment returns on insurance funds. The final 2019 ordinary dividend of 718.00 cents per share that was declared on 4 March 2020 was paid on Monday 30 March 2020. The information in this announcement has not been reviewed and reported on by Santam's external auditors. Shareholders are advised that this is not a trading statement as per paragraph 3.4(b) of the JSE Limited Listings Requirements. Cape Town 30 March 2020 Sponsor: Investec Bank Limited Date: 30-03-2020 08:31:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.