South African short-term insurer Santam is taking a major step toward international expansion with the launch of a new UK-based operation. The company has received in-principle approval to establish Santam Syndicate 1918 at Lloyd’s of London, one of the world’s largest and most prestigious insurance and reinsurance marketplaces.
This strategic move is part of Santam’s broader ambition to diversify its business and accelerate growth beyond South Africa. The syndicate will focus on high-margin specialist lines of insurance, leveraging Santam’s existing expertise and infrastructure.
“International expansion and diversification is a key strategic pillar of Santam to accelerate future growth prospects from a Gross Written Premium and earnings perspective,” the group stated.
What Is a Lloyd’s Syndicate?
A Lloyd’s syndicate is a group of investors or insurance professionals who collaborate to underwrite insurance risks within the Lloyd’s market. By establishing its own syndicate, Santam gains access to Lloyd’s global trading licenses, enabling it to operate in over 75 insurance and 200 reinsurance territories worldwide.
This model allows Santam to scale internationally without the long lead times and capital intensity typically associated with greenfield operations.
Strategic Partnerships and Leadership Appointments
The UK-based syndicate will draw on Santam’s specialist capabilities in South Africa and its strategic partnership with SanlamAllianz across the African continent. The company has already appointed its first leadership team in London, composed of professionals with deep experience in the Lloyd’s market.
Additionally, Robert Stuchbery, a seasoned executive with extensive Lloyd’s experience, has joined the Santam board, further strengthening the group’s international governance and oversight.
Financial Impact and Outlook
Santam anticipates minimal earnings impact in the first year of the syndicate’s operations, with positive contributions expected from year two onward. Over the medium term, the initiative is projected to meet its return on capital targets, supporting sustainable growth.
Operations at Santam Syndicate 1918 are expected to commence on 1 January 2026, subject to final regulatory approvals.
Strong Financial Performance in H1 2025
Santam’s financial results for the first half of 2025 reflect robust performance across key metrics:
- Earnings per share (EPS) rose by 20% to 1,873 cents
- Headline earnings per share (HEPS) increased by 19%
- Interim dividend declared at 590 cents per share, up 10% year-on-year
- Underwriting margin reached 11.3%, exceeding the target range of 5%–10%
- Gross Written Premium (GWP) and Net Earned Premium (NEP) showed strong growth
- Annualised return on capital significantly surpassed the 24% target
Subsidiary MiWay also delivered solid results, with 14% GWP growth and an underwriting margin of 10.9%, driven by successful strategic initiatives.
Navigating a Challenging Domestic Environment
Despite its strong performance, Santam acknowledged the challenging economic conditions in South Africa, citing:
- Weak GDP growth
- Stagnant employment levels
- Pressure on disposable income due to elevated inflation and interest rates
However, the group noted early signs of recovery in consumer financial health, supported by easing inflation and monetary policy.
Santam remains committed to its core South African market, maintaining leadership across personal, commercial, and specialist insurance lines. The group continues to implement underwriting actions to address claims inflation and frequency, aiming to restore profitability and momentum.
FutureFit 2030 Strategy
Santam’s FutureFit 2030 strategy has laid a strong foundation for resilience and adaptability, enabling the group to pursue growth both locally and internationally.
| Metric | 30 June 2024 | 30 Jun 2024 | % |
|---|---|---|---|
| Group insurance revenue (R million) | 27,497 | 24,634 | 12% |
| Ordinary dividend per share (R cents per share) | 590.00 | 535.00 | 10% |
| Basic earnings per share (R cents per share) | 1,873 | 1,567 | 20% |
| Headline earnings per share (HEPS) (R cents per share) | 1,873 | 1,578 | 19% |
