Santam Limited · JSE:SNT
Santam — Debt Investor Presentation (September 2025)
47 slides from Santam's debt investor presentation, September 2025
Slide 1: Subordinated Debt Issuance
2025 Subordinated Debt Issuance R5 BILLION UNSECURED SUBORDINATED CALLABLE NOTE PROGRAMME Presented by: Wikus Olivier and Charisse Ras September 2025 Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 2: Contents
Contents 1. Overview 2. Santam Business Portfolio 3. Operating Environment 4. Strategic Update 5. Financial Results 6. Capital Management 7. Risk Management 8. Debt Capital Market Offering
Slide 3: Overview
Overview Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies. Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 4: Santam Subordinated Debt Issuance: Summary
Santam Subordinated Debt Issuance: Summary Background Performance – 1H25 Financial Strength – 1H25 Risk Management Group economic capital Significant focus on risk Santam has received in-principle Conventional insurance coverage ratio of 170% management across all areas of approval from the Lloyd’s
Slide 5: Santam Business Portfolio
Santam Business Portfolio Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 6: Santam Business Portfolio
Santam Business Portfolio Santam Santam Santam Santam Santam Re MiWay Santam Client Broker Partner Specialist Syndicate 1918 Solutions Solutions Solutions Solutions Our digital-first Our multi – and Our partnership and Our specialist Our reinsurance Our direct insurance The set up of the omni-channe
Slide 7: Operating Environment
Operating Environment Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies. Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group compani
Slide 8: Global growth is facing headwinds, with P&C rates softening
Global growth is facing headwinds, driven by trade policy uncertainty and heightened geopolitical tensions, with P&C rates softening Global economy faces trade-related headwinds Global Commercial Pricing environment softening GLOBAL GDP 19%18% 8 6.6 GLOBAL GDP 14% 15% 11% 6 9% 3.6 3.5 3.3 3.0 3.1 6%
Slide 9: SA economy remains constrained by structural and socioeconomic challenges
SA economy remains constrained by structural and socioeconomic challenges. The US tariffs are expected to cause further strain Rising frequency and severity of weather events Crime and societal issues, including rising cyber attacks Widespread impacts of deteriorating infrastructure (Municipal infra
Slide 10: Santam Strategy
Santam Strategy Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 11: We are executing our strategy, laying a strong foundation for accelerated value creation
We are executing our strategy, laying a strong foundation for accelerated value creation Our purpose To safeguard what is important to our clients Strategic intent Leading South African insurer driven by data, with the client at the centre of everything we do Values Care Collaboration Integrity Inno
Slide 12: Accelerating international strategy through the Santam Syndicate 1918
We are accelerating our international strategy through the Santam Syndicate 1918 to transform our growth prospects and investment case We have received in-principle approval from the Lloyd’s council to set up a Santam Syndicate, with a planned gross written premium of approximately £300 - 400 millio
Slide 13: Our long term targets to 2030
Our long term targets to 2030 FINANCIAL GWP GROWTH NET DIVERSIFICATION RATE UNDERWRITING International GWP MARGIN >20% CPI + GDP + 1% to 2% 5% to 10% Direct GWP> 30% RETURN ON DIVIDEND CAPITAL CAPITAL GROWTH COVERAGE RATIO >24% Based on NEP growth 145% to 165% NON-FINANCIAL POLICY COUNT CUSTOMER EMP
Slide 14: Financial Results
Financial Results Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 15: Results at a glance
Results at a glance For the period ended For the period ended 30 June 2025 30 June 2024 NEP growth 16% 7% Claims ratio 56.0% 62.3% Acquisition costs ratio 32.7% 31.2% Underwriting margin 11.3% 6.5% Investment return on insurance funds 2.6% 2.3% Net insurance result 13.9% 8.8% Return on capital 33.2%
Slide 16: Business Volumes
Business Volumes Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies. Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 17: Conventional insurance: gross written premium vs CPI + GDP growth
Conventional insurance GROSS WRITTEN PREMIUM VS CPI + GDP GROWTH • Double-digit growth at 10.8 MiWay, Partner Solutions 11 10.5 9.2 9.7 and Santam Re 8.2 8.1 • First-time contribution of 8 7.3 MultiChoice transaction 5.3 5.5 5.7 5.5 • Percentage 5 4.2 4.6 4.2 Good growth at Broker and 3.6 Client Sol
Slide 18: Conventional insurance: geographic analysis
Conventional insurance GROSS WRITTEN PREMIUM GEOGRAPHIC ANALYSIS (%) • Gross written 14% premium remains mostly from South Africa 11% • Positive momentum 6% at Santam Re 7% outside SA • Focus remains on exporting proven capabilities • Launch of Lloyd’s Syndicate to drive accelerated change 82% in pr
Slide 19: Earnings
Earnings Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies. Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 20: Analysis of earnings
Analysis of earnings R million Jun-25 Jun-24 Variance • Strong growth in net insurance result – Conventional 2 526 2 050 23% improved underwriting Net insurance result 2 491 1 352 84% performance and return on insurance Investment return on capital 35 698 (95%) funds ART profit before tax 417 326 28
Slide 21: Operating Earnings
Operating Earnings Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies. Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 22: Net insurance result: Conventional
Net insurance result: Conventional Jun-25 Jun-24 % of NEP % of NEP % change • Improvement in R million R million profitability of in-force book Gross written premium 20 944 19 084 9.7% • Turnaround in property Net earned premium 17 920 100.0% 15 395 100.0% 16.4% portfolio Claims incurred 10 029 56.0
Slide 23: Conventional insurance: net insurance result as % of NEP
Conventional insurance NET INSURANCE RESULT: AS A % OF NET EARNED PREMIUM • Underwriting margin above the 5% - 10% target range 13.9 • Catastrophe claims and large losses of R705 12.5 2.6 million in 2024 compared to R144 million in 2025 10.0 8.8 • Current favourable 2.4 1.5 2.6 claims experience not
Slide 24: Investment Results
Investment Results Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies. Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 25: Asset liability matching
Asset liability matching GROUP CONSOLIDATED NET ASSETS AT 30 JUNE 2025 • Disposal of listed equities to fund 11 415 35 492 3 064 13 647 63 618 MultiChoice transaction 100 1 3 2 and to position capital 6 12 2 for launch of Lloyd’s Syndicate 26 80 • Strategic investments 2 mostly reflect economic 73 i
Slide 26: Return on capital
Return on capital TOTAL COMPREHENSIVE INCOME EXPRESSED AS % OF WEIGHTED AVERAGE SHAREHOLDERS’ FUNDS 37 33.6 33.2 31.9 0.7 28.5 28.5 27 11.9 22.2 Percentage 3.1 9.9 18.5 15.1 22.3 17 4.9 32.5 19.1 8.0 20.0 18.6 7 13.6 13.4 11.3 8.8 (0.8) (3) Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Jun-24 Dec-24 Jun-25 Ins
Slide 27: Capital Management
Capital Management Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 28: Capital Requirements – Short Term Insurance Industry
Capital Requirements – Short Term Insurance Industry The Prudential • Insurance industry uses the standard formula to calculate its regulatory capital requirements Authority implemented the SAM • Solvency capital requirement set at a 1-in-200-year loss level over a 1-year time horizon framework duri
Slide 29: Santam – Capital Bases
Santam – Capital Bases Santam uses two capital bases to guide capital management decisions: • Based on own assessment of risk Economic Internal Model (EIM): • Determined using own internal model • Underlying structure based on SAM standard formula Regulatory Internal • Use economic assessment of “In
Slide 30: Capital Management Philosophy
Capital Management Philosophy Ensuring policyholder security is the highest priority. Maximising the return on shareholders’ capital within an appropriate risk appetite framework. Other considerations include: • Buffer over current regulatory capital requirements • Maintaining Santam’s insurer finan
Slide 31: Economic Internal Model
Economic Internal Model Santam Ltd – Model Structure Economic SCR Insurance Risk Market Risk Credit Risk Reserve Risk Operational Risk Premium Interest Assets Catastrophe Equity RI Exposure Prefs RI Claims Currency Receivables Spread Concentration SEM NMSIS Associates Intangibles
Slide 32: Capital Coverage Ratios
Capital Coverage Ratios The capital coverage ratios for the Santam Group and Santam Limited license at 30 June 2025 Regulatory capital coverage ratio is higher than Santam Ltd.'s economic capital coverage Economic Capital (R’m) Santam Group Santam Ltd ratio. Own Funds 16,711 14,784 Solvency Capital
Slide 33: Dividend Philosophy
Dividend Philosophy Santam declared an interim ordinary dividend of 590 cps, up 10.3% on 2024. Interim dividend will reduce the economic capital coverage ratio to a level that remains at the upper end of the target band (145% to 165%). Surplus capital above mid-point allocated to fund growth through
Slide 34: Capital Management History
Capital Management History During 2022, Santam’s target economic coverage ratio band was reduced from “150% to 170%” to “145% to 165%”. Surplus capital above mid- point allocated to fund growth through Lloyd’s Syndicate.
Slide 35: Capital Structure
Capital Structure The Santam Group capital structure at 30 June 2025: Additional R1 billion subordinated debt issuance is in support of the Lloyd’s initiative. Capital (R’m) Capital % Tier 1: Shareholders Funds 13,647 82% Tier 2: Subordinated Debt 3,064 18% Capital Resources 16,711 100%
Slide 36: Financial Leverage
Financial Leverage R3.0bn subordinated debt in issue. Regulatory scope to increase this to R4.9bn (50% of SCR). Aim to maintain debt/equity ratio between 25% - 30%.
Slide 37: Risk Management
Risk Management Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies. Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 38: Key Risk Themes
Key Risk Themes • Reinsurance and asset counterparties • R100m per risk; R1.0bn per event • Minimum international credit rating of A- • Comprehensive reinsurance program Underwriting risk Credit risk for reinsurance counterparties • Diversification – classes of business; • Risk appetite limits on as
Slide 39: Reinsurance Program
Reinsurance Program Extensive per risk and per event reinsurance program Maximum exposure per risk of R100 million. Per event catastrophe deductible of R1.0 billion, Santam is building a catastrophe reserve (June 2025: R470m) as a buffer against catastrophe losses greater than R500m. Purchased R12.3
Slide 40: Risk Framework
Risk Framework Significant focus on risk management across all areas of the Santam Group. Risks are quantified and understood with appropriate controls, limits and mitigation actions. Risk appetite framework is key tool for managing risk: • Covers all risk areas of the business • Risk appetites for
Slide 41: Debt Capital Market Offering
Debt Capital Market Offering Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
Slide 42: Key Features of the Program
Key Features of the Program Issuer Santam Limited Programme Type Unsecured Subordinated Callable Note Programme Programme Size R5 billion The Issuer is required to defer payment of principal if a Regulatory Deficiency Redemption Deferral Event Deferral of Principal has occurred, subject to condition
Slide 43: Santam Credit Rating
Santam Credit Rating Santam is currently rated by S&P and A.M. Best. The subordinated notes for the upcoming issuance has been rated by S&P: S&P Issuer South Africa National Scale Rating zaAAA (stable) Subordinated notes zaAA- Current notes in issue: Instrument Amount Call Date Rating SNT05 (to be r
Slide 44: Indicative Terms
Indicative Terms DMTN PROGRAMME Issuer Santam Limited Arrangers/ Dealers Absa Corporate and Investment Bank DMTN Programme Size ZAR5bn TERM SHEET Issuer Rating (National Scale) zaAAA Subordinated Notes Rating zaAA- Instrument Unsecured and subordinated Notes Listing & Settlement The Interest rate ma
Slide 45: Indicative Timeline
Indicative Timeline Indicative dates Action 8 September 2025 Auction announcement 17-19 September 2025 Investor roadshow 23 September 2025 Price guidance and draft APSs sent to investors 22 - 26 September 2025 S&P indicative note rating released 01 October Auction date 06 October Settlement date (T+
Slide 46: Questions?
Questions?
Slide 47: Thank you
Thank you