Santam Ltd. expects its headline earnings per share (HEPS) for the year ended December 31, 2012 to be 15% to 20% below those reported for the prior period. Earnings per share (EPS) are expected to be 25% to 30% below the 2011 corresponding results. The decrease in HEPS and EPS is due to a decrease in underwriting results and an increase in the taxation charge, off-set by an increase in the investment results. The difference between HEPS and EPS is due to impairment provisions. The group's solvency margin as at December 31, 2012 is expected to be within the targeted
range of 35% to 45%.