Santam Limited · JSE:SNT

Santam — H1 2013 Earnings Presentation

68 slides from Santam's earnings presentation, August 2013

1. Slide 1: Presentation to Analysts 2013

   PR ES EN TAT I O N TO ANALYS T S 2 013

2. Slide 2: Directors and corporate information

   Non-executive directors Company secretary GG Gelink (Chairman), Masood Allie B Campbell, MD Dunn, MP Fandeso, BTPKM Gamedze, ML Marole, Santam head office and registered address JP Möller, MJ Reyneke, J van Zyl 1 Sportica Crescent Tyger Valley Executive directors Bellville 7530 IM Kirk (Chief Execut

3. Slide 3: Table of contents

   Table of contents Industry conditions 4 Financial results 6 Dividend 32 Strategy and focus 34 Reviewed interim report for Santam Limited and its subsidiaries for the six months ended 30 June 2013 45 Presentation to Analysts Santam Limited and its subsidiaries Reviewed interim report for the six mont

4. Slide 4:     …

        •  •  •  •  2

5. Slide 5: 3

   3

6. Slide 6: GENE

   8/28/2013   •  •   •  •  •  •   

7. Slide 7: 5

   5

8. Slide 8:   • …

     •  •  •  •  • 

9. Slide 9: 7

   7

10. Slide 10:   •  • …

      •  •  •  •  • 

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    9

12. Slide 12:              

                                        

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    11

14. Slide 14:          …

                                                

15. Slide 15: 13

    13

16. Slide 16:              

                                                  

17. Slide 17: 15

    15

18. Slide 18:             …

                                              

19. Slide 19: 17

    17

20. Slide 20:            …

                                           

21. Slide 21: 19

    19

22. Slide 22:              

                                                         

23. Slide 23: 21

    21

24. Slide 24:           …

                                         

25. Slide 25: 23

    23

26. Slide 26:              

                                            

27. Slide 27: 25

    25

28. Slide 28:              

                                             

29. Slide 29: 27

    27

30. Slide 30:              

                                                      

31. Slide 31: 29

    29

32. Slide 32:  •  …

     •    •  

33. Slide 33: 31

    31

34. Slide 34: Dividend

                   32

35. Slide 35: 33

    33

36. Slide 36:  •  •  …

     •  •    •  •   • 

37. Slide 37: 35

    35

38. Slide 38:  •  • …

     •  •   •  •  • 

39. Slide 39: 37

    37

40. Slide 40:          • …

             •   •  •  •   

41. Slide 41: 39

    39

42. Slide 42:          • …

             •  •  •  •  • 

43. Slide 43: 41

    41

44. Slide 44:    •  •   •     …

       •  •   •        42

45. Slide 45: 43

    43

46. Slide 46: Thank you

    THANK YOU

47. Slide 47: Reviewed Interim Report

    SANTAM limited AND ITS SUBSIDIARIES R E VIEW ED INTER IM R E PO RT FOR THE SIX MONTHS ENDED 30 JUNE 2013

48. Slide 48: Interim highlights

    • Gross written premium growth of 9% • Underwriting margin of 1.3% significantly impacted by difficult underwriting conditions • Positive investment returns in a volatile market • Group solvency ratio of 40% • Cash generation significantly impacted by settlement of 2012 catastrophe event claims • In

49. Slide 49: Financial review

    Financial review The Santam group experienced difficult underwriting conditions during the reporting period that severely impacted the underwriting result, causing a substantially lower net underwriting margin of 1.3% compared to 6.1% achieved in the corresponding period in 2012. Satisfactory gross

50. Slide 50: Financial review

    Financial review Santam concluded the acquisition of a 100% interest in Travel Insurance Consultants (TIC) in June 2013 for R95 million. The transaction will enable TIC to build its leadership position through its relationships within the travel market and leverage off Santam’s support. The board wo

51. Slide 51: Consolidated statement of financial position

    Consolidated statement of financial position Reviewed Reviewed Audited At At At 30 June 2013 30 June 2012 31 Dec 2012 Notes R million R million R million ASSETS Non-current assets Property and equipment 97 81 99 Intangible assets 1 082 1 024 990 Deferred income tax 227 196 221 Investment in associat

52. Slide 52: Consolidated statement of comprehensive income

    Consolidated statement of comprehensive income Reviewed Reviewed Six months Six months Audited ended ended Year ended 30 June 2013 30 June 2012 Change 31 Dec 2012 Notes R million R million % R million Gross written premium 9 858 9 050 9% 19 386 Less: Reinsurance premium 2 089 1 739 3 564 Net premium

53. Slide 53: Consolidated statement of changes in equity

    Consolidated statement of changes in equity Non- controlling Attributable to equity holders of the company interest Total Distribut- Share Treasury Other able capital shares reserves reserves R million R million R million R million R million R million Balance as at 1 January 2012 107 (635) 1 492 5 0

54. Slide 54: Consolidated statement of cash flows

    Consolidated statement of cash flows Reviewed Reviewed Six months Six months Audited ended ended Year ended 30 June 2013 30 June 2012 31 Dec 2012 Notes R million R million R million Cash generated from operations 516 1 302 2 362 Interest paid (34) (60) (106) Income tax paid (88) (357) (521) Net cash

55. Slide 55: Notes to the interim financial information

    Notes to the interim financial information 1. Basis of preparation The consolidated interim financial information is prepared in accordance with the requirements of the JSE Limited Listings Requirements for interim reports and the requirements of the Companies Act of South Africa. The JSE Limited Li

56. Slide 56: Notes to the interim financial information

    Notes to the interim financial information 5.1 For the six months ended 30 June 2013 Insurance Investment activities activities Unallocated Total Business activity R million R million R million R million Revenue 9 858 282 – 10 140 Gross written premium 9 858 – – 9 858 Net written premium 7 769 – – 7

57. Slide 57: Notes to the interim financial information

    Notes to the interim financial information 5.2 For the six months ended 30 June 2012 Insurance Investment activities activities Unallocated Total Business activity R million R million R million R million Revenue 9 050 290 – 9 340 Gross written premium 9 050 – – 9 050 Net written premium 7 311 – – 7

58. Slide 58: Notes to the interim financial information

    Notes to the interim financial information 5.3 For the year ended 31 December 2012 Insurance Investment activities activities Unallocated Total Business activity R million R million R million R million Revenue 19 386 858 – 20 244 Gross written premium 19 386 – – 19 386 Net written premium 15 822 – –

59. Slide 59: Notes to the interim financial information

    Notes to the interim financial information 6. Financial assets and liabilities at fair value through income Fair value estimation The table below analyses financial instruments, carried at fair value through income, by valuation method. There were no significant changes in the valuation methods appl

60. Slide 60: Notes to the interim financial information

    Notes to the interim financial information Level 1 Level 2 Level 3 Total June 2012 R million R million R million R million Equity securities Quoted Listed 2 730 – – 2 730 Unitised funds – 80 – 80 Irredeemable preference shares 2 – – 2 Unquoted – – 418 418 Total equity securities 2 732 80 418 3 230 D

61. Slide 61: Notes to the interim financial information

    Notes to the interim financial information 6. Financial liabilities at fair value through income (continued) Level 1 Level 2 Level 3 Total June 2013 R million R million R million R million Debt securities 1 022 – – 1 022 Investment contracts – 77 – 77 1 022 77 – 1 099 June 2012 Debt securities 1 029

62. Slide 62: Notes to the interim financial information

    Notes to the interim financial information Reviewed Reviewed At At Audited 30 June 30 June At 2013 2012 31 Dec 2012 R million R million R million 7. Insurance liabilities and reinsurance assets Gross Long-term insurance contracts – claims reported and loss adjustment expenses 7 – – – claims incurred

63. Slide 63: Notes to the interim financial information

    Notes to the interim financial information Reviewed Reviewed Audited At At At 30 June 2013 30 June 2012 31 Dec 2012 R million R million R million 8. Investment income and net gains/(losses) on financial assets and liabilities at fair value through income Investment income 363 337 859 Dividend income

64. Slide 64: Notes to the interim financial information

    Notes to the interim financial information Reviewed Reviewed Six months Six months Audited ended ended Year ended 30 June 2013 30 June 2012 31 Dec 2012 10. Business combinations 2013 Additions Travel Insurance Consultants (Pty) Ltd Santam Limited has acquired 100% of the shareholding in Travel Insur

65. Slide 65: Notes to the interim financial information

    Notes to the interim financial information Reviewed Reviewed Six months Six months Audited ended ended Year ended 30 June 2013 30 June 2012 31 Dec 2012 11. Earnings per share Basic earnings per share Profit attributable to the company’s equity holders (R million) 405 475 1 027 Weighted average numbe

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68. Slide 68: Santam insurance

    insurance good and proper www.santam.co.za

Santam — H1 2013 Earnings Presentation on 6ix