SANTAM LIMITED - Operational update for the six months ended 30 June 2026

Operational update for the six months ended 30 June 2026

SANTAM LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1918/001680/06
LEI: 37890092DC55C7D94B35
JSE Share Code: SNT & ISIN: ZAE000093779
A2X Share Code: SNT
NSX Share Code: SNM
Bond Company Code: BISAN
("Santam" or “the Company” or “the Group”)


OPERATIONAL UPDATE FOR THE SIX MONTHS ENDED 30 JUNE 2026

This is a general communication to Santam shareholders and noteholders covering
the operational performance of the Group for the six months ended 30 June 2026 (the
"period"). Unless the context indicates otherwise, references to the comparable period
are to the six months ended 30 June 2025.
The Group achieved a solid performance during the period, with all key financial
performance metrics meeting or exceeding Santam’s long-term targets despite a
challenging macro-economic environment, investment market volatility and significant
weather-related and other large claims incurred during the period.


Conventional insurance business

The conventional insurance business achieved 10% growth in gross written premium
(“GWP”), with solid contributions from all businesses. Miway, Santam Direct, Santam
Re and Santam Partner Solutions achieved double-digit growth. Santam Specialist
Solutions’ growth trajectory improved since the end of the 2025 financial year,
contributing positive growth for the period despite persistent pressure from the current
softer premium rate cycle. Growth in the traditional intermediated market in South
Africa slowed down due to softer renewal increases and heightened competition in
commercial lines. Santam Syndicate 1918 concluded business up to the end of June
2026 with an expected GWP of R1.3 billion. Given the nature of business written to
date, which comprises mostly of consortia and facility lines, the recognition of GWP is
deferred over a period of 12 months, with GWP of R461 million recognised during the
period.


The Group achieved a solid underwriting margin above the mid-point of the 5% to 10%
target range despite adverse weather-related and other large losses, and a maiden
underwriting loss of R230 million from Syndicate 1918. Significant losses were
incurred in respect of the storms in Limpopo in February 2026 and the Western Cape
during May 2026. Total weather-related catastrophe losses and other large claims
amounted to R1.5 billion compared to R144 million in the prior period, which was
characterised by a particularly benign claims environment. This was partly offset by a
reduction in the Group’s reserving confidence level, which had a positive earnings
impact of some R325 million. Attritional claims experience remained positive, to a large
extent attributable to the improvement in the underlying profitability of the in-force book
following the underwriting actions implemented over the past few years, in addition to
diligent expense management. The loss contributed by Santam Syndicate 1918 is due
to delayed revenue recognition under IFRS, with the Syndicate expected to contribute
positively to the Group’s underwriting results on a year-of-account basis.
Investment return earned on insurance funds as a percentage of net earned premium
outperformed the comparable period, supported by good returns from fixed-interest
markets and an outperformance of benchmarks by the Group’s investment managers.


Alternative Risk Transfer ("ART") business
The ART business segment maintained its solid performance, contributing double-digit
earnings growth.


Shareholder investment returns

The investment return earned on the Group’s capital portfolios increased significantly,
attributable to a marked decline in foreign currency translation losses and a one-off
revaluation of the investment in Shriram General Insurance (“SGI”). Following the
Sanlam Group’s acquisition of a majority stake in SGI, the minority discount included
in the valuation of SGI was reduced, which supported a one-off R590 million increase
in the Group’s investment.


Attributable earnings

Earnings attributable to shareholders of the Company increased on the prior period,
supported by the revaluation of the investment in SGI.


The financial information included in this announcement has not been reviewed or
reported on by Santam's external auditors.


Shareholders and noteholders are further advised that Santam's results for the six
months ending 30 June 2026 are expected to be released on SENS on or about
3 September 2026.


26 August 2026

Equity and Debt Sponsor: Investec Bank Limited

NSX Sponsor: Simonis Storm Securities (Pty) Ltd (a member of the Namibian
Securities Exchange)
Date: 26/08/2026 13:00:00
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