SANTAM LTD 2022 ANALYST PRESENTATION
INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2022
PRESENTED BY: TAVAZIVA MADZINGA AND HENNIE NEL
CONTENT
- The Santam business portfolio
- Market context
- Financial results
- Capital management
- Group strategy and priorities
- ESG matters
THE SANTAM BUSINESS PORTFOLIO
Alternative Risk Transfer | |||
Conventional | (ART) | ||
• | Santam Commercial | • | Centriq Insurance |
and Personal | • | Santam Structured | |
• | Santam Specialist | Insurance |
- Santam Re
- MiWay
Santam's Strategic Investment Partnerships
Santam's share of the insurance results of the SEM general insurance businesses
MARKET CONTEXT
INSURANCE MARKET
OUTLOOK
All markets
- Global economy is expected to continue to slowdown
- Inflation continues to surge as supply chain disruptions and high energy prices persist
- Current developments in Ukraine/Russia and China/Taiwan add uncertainty to the economic outlook
- Rate hardening in commercial lines and emerging markets will remain key drivers to insurance growth
- Climate action failure and frequency and severity of extreme weather events remain top risks
- Great Resignation and a shift to remote work intensifies the war for talent
- ESG and climate disclosure are shifting towards mandatory reporting
INSURANCE MARKET
OUTLOOK
South Africa
- Economic growth outlook is revised upwards
- The short-term outlook for the insurance industry remains positive
- The surge in inflation, supply chain disruptions and persistent loadshedding will continue to impact claims cost
- Weather-relatedevents, civil unrest, poor infrastructure maintenance and destruction of property remain key risks for the growth and profitability of the industry
- Reinsurance rates continue to harden and reduced appetite for South African risks
- Increased risk awareness should be supportive of growth
KWAZULU-NATAL FLOODS
CURRENT STATUS
- Gross exposure currently estimated at R4.4 billion
- Santam's net exposure estimated to be R566 million, inclusive of reinstatement premiums
- The largest natural catastrophe in Santam's history
- Santam provided on the ground support to its clients during this trying time, with the deployment of our claims team in KwaZulu-Natal immediately after the event
CATASTROPHE CLAIMS
GROSS TOTAL CATASTROPHE CLAIMS: ALL PERILS
R million
- 000
- 000
- 000
- 000
- 000
-
000
-
Infectious Disease
Other
Hail
Flood/Storm
Fire
2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Financial Year
All years expressed in equivalent values as at 30 June 2022
OTHER UNDERWRITING FACTORS
CURRENT STATUS
- Adverse weather conditions in Q1 and several smaller weather-related catastrophe events
- Claims inflation in excess of premium increases
- Large losses
- Power surge claims
- Increase in motor theft
CONTINGENT BUSINESS INTERRUPTION COVER
CURRENT STATUS
- Santam reviewed its provisions for CBI claims at 30 June 2022 and the net CBI provision was reduced by R397 million mainly due to
- actual claims to date being lower than the initial estimates
- support from all of Santam's catastrophe reinsurers, who are meeting their obligations
- Some uncertainty remains about ultimate liability - until process has been finalised
- Steady progress in finalising the open CBI claims - gross CBI claims paid of R4.3 billion and reinsurance recoveries of R2.2 billion to the end of June 2022
Attachments
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Disclaimer
Santam Limited published this content on 24 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 13:43:05 UTC.
