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SANTAM LIMITED - Reviewed condensed consolidated interim financial statements for the six months ended 30 June 2021

Release Date: 02/09/2021 07:30
Code(s): SNT     PDF:  
Wrap Text
Reviewed condensed consolidated interim financial statements for the six months ended 30 June 2021

Santam Limited and its subsidiaries
("Santam" or "the company" or "the group")
Incorporated in the Republic of South Africa
Registration number 1918/001680/06
ISIN: ZAE000093779
JSE share code: SNT
NSX share code: SNM
A2X share code: SNT
Debt company code: BISAN

REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2021 AND DECLARATION OF ORDINARY
DIVIDEND (NUMBER 133)

KEY FINANCIAL RESULTS
                                                                                          Period ended  Period ended    Change
                                                                                           30 Jun 2021   30 Jun 2020         %
Gross written premium (GWP) (R million)                                                         20,070        18,258       10%
Ordinary dividend per share (R cents)                                                              432             -      100%
Basic earnings per share (R cents)                                                                 863            24     >100%
Headline earnings per share (HEPS) (R cents)                                                       863           663       30%

SALIENT FEATURES
- Economic capital coverage ratio of 160%
- Conventional insurance net underwriting margin of 6.7%
- Conventional insurance GWP growth of 5% to R15.5 billion
- Gross claims paid R10.4 billion
- Return on shareholders' funds 18.1%
- Contingent business interruption (CBI) payments of R1.7 billion to date
- Interim dividend per share of 432 cents

KEY PERFORMANCE HIGHLIGHTS
The Santam group reported resilient operating results under challenging economic circumstances.

Conventional insurance
- The underwriting margin of 6.7%, above the midpoint of our target range, compares positively to 2020, which was impacted by 
  premium relief support provided to policyholders and CBI claims. Santam was pleased to commence processing valid CBI claims
  in January 2021. Good progress has been made with approximately R700 million paid to date in CBI claims, in addition to the
  R1 billion interim relief payments in August 2020, bringing the total CBI payments to R1.7 billion. Satisfactory GWP growth
  of 5% was achieved.
- The investment return on insurance funds remains muted due to the low interest rate environment in South Africa and
  international markets.

Alternative Risk Transfer (ART) insurance
The ART business achieved strong operating results, driven by fee income growth and improved underwriting results.

Sanlam Emerging Markets (SEM) general insurance businesses
- The SEM general insurance businesses achieved satisfactory operating results during the period. Santam's share of the
  general insurance net insurance result from the SEM businesses increased by 23.4%.

The group remains committed to our brand promise of Insurance good and proper.

DECLARATION OF ORDINARY DIVIDEND (NUMBER 133)
Notice is hereby given that the board has declared a gross interim dividend of 432.00 cents per share (2020: no dividend), 
345.60 cents net of dividend withholding taxation, where applicable, per ordinary share for the six months ended 30 June 2021
to those members registered on the record date, being Thursday, 23 September 2021. The dividend has been declared from income 
reserves. 

A dividend withholding taxation of 20% will be applicable to all shareholders who are not exempt.

Share code: SNT
ISIN: ZAE000093779
Company registration number: 1918/001680/06
Company tax reference number: 9475/144/71/4
Gross cash dividend amount per share: 432.00 cents
Net dividend amount per share: 345.60 cents
Issued shares at 1 September 2021: 115 131 417
Declaration date: Wednesday, 1 September 2021
Last day to trade cum dividend: Monday, 20 September 2021
Shares trade ex dividend: Tuesday, 21 September 2021
Record date: Thursday, 23 September 2021
Payment date: Monday, 27 September 2021

Share certificates may not be dematerialised or rematerialised between Tuesday, 21 September 2021, and Thursday, 23 September 
2021, both days inclusive.

In terms of the dividends tax legislation, the dividends tax amount due will be withheld and paid over to the South African
Revenue Service (SARS) by a nominee company, stockbroker or Central Securities Depository Participant (CSDP) (collectively
Regulated Intermediary) on behalf of shareholders. Shareholders should seek their own advice on the tax consequences
associated with the dividend and are particularly encouraged to ensure their records are up to date so that the correct 
withholding tax is applied to their dividend.

31 DECEMBER 2020 EARNINGS PER SHARE RESTATEMENT
Shareholders are advised that the previously reported attributable earnings per share and headline earnings per share
information has been restated for the correction of hyperinflation accounting applied in the results for the year ended 31
December 2020. The restatement did not have an impact on the net asset value as at 31 December 2020 and also had no impact
on the results for the six months ended 30 June 2020. Refer to note 15.2 in the full reviewed condensed consolidated interim
financial statements announcement ("full announcement") available at
https://www.santam.co.za/media/2686344/2021-interim financial statements.pdf for additional information.  

SHORT FORM ANNOUNCEMENT
This short form announcement is the responsibility of the directors and is only a summary of the information in the full
announcement. Any investment decision by investors and/or shareholders and/or bondholders should be based on consideration
of the full announcement that was released on 2 September 2021 and which can be found on the company's website at 
https://www.santam.co.za/media/2686344/2021-interim financial statements.pdf. Copies of the full announcement may also be
requested at the company's registered office, at no charge, during office hours at the investor relations department (see
contact details below).

PricewaterhouseCoopers expressed an unmodified review opinion on the reviewed condensed consolidated interim financial
statements in their report dated 1 September 2021. The full report is available on 
https://www.santam.co.za/media/2686344/2021-interim financial statements.pdf.

The full announcement was released on the JSE's website at https://senspdf.jse.co.za/documents/2021/JSE/ISSE/SNT/HY2021.pdf.

The presentation to analysts can be found on the company's website at 
https://www.santam.co.za/media/2686343/2021-june-ias-booklet.pdf.

ADMINISTRATION

INVESTOR RELATIONS
Gloria Tapon Njamo
T: +27 21 915 8228
E: Gloria.TaponNjamo@santam.co.za

NON-EXECUTIVE DIRECTORS
M Chauke, C Da Silva, MP Fandeso, PB Hanratty, D Loxton, MLD Marole, M Moholi (chairperson), AM Mukhuba, JJ Ngulube,
MJ Reyneke, PE Speckmann

EXECUTIVE DIRECTORS
L Lambrechts (chief executive officer), HD Nel (chief financial officer)

COMPANY SECRETARY
T Moshakga

TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd
15 Biermann Avenue, Rosebank 2196
Private Bag X9000, Saxonwold 2132
Tel: 011 370 5000
Fax: 011 688 5216
www.computershare.com

SANTAM HEAD OFFICE AND REGISTERED ADDRESS
1 Sportica Crescent
Tyger Valley, Bellville 7530
PO Box 3881, Tyger Valley 7536
Tel: 021 915 7000
Fax: 021 914 0700
www.santam.co.za

Registration number 1918/001680/06
ISIN ZAE000093779
JSE share code: SNT
NSX share code: SNM
A2X share code: SNT

SPONSOR
Investec Bank Ltd

2 September 2021

Santam is an authorised financial services provider (licence number 3416).



Date: 02-09-2021 07:30:00
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