Santam H1 2026 GWP up 10% Despite R1.5bn Storm Claims

In Short

Santam reported a 10% rise in gross written premium for the six months ended 30 June 2026. The insurer also flagged R1.5 billion in catastrophe and other large claims.

What Happened

Santam said its conventional insurance business grew gross written premium, or GWP, by 10% in the first half of 2026. GWP is the total value of premiums written before deductions, a common way insurers track top line growth.

The group said growth came across its portfolio, including MiWay, Santam Direct, Santam Re and Santam Partner Solutions, which all recorded double-digit growth. Santam Specialist Solutions returned to positive growth for the period, although management noted pressure from a softer premium rate cycle. A softer rate cycle means prices rise more slowly, or even fall, because competition is high and claims costs are not forcing big repricing.

Santam also shared an update on Santam Syndicate 1918, its Lloyd’s syndicate business. It expects Syndicate 1918 to write about R1.3 billion in GWP up to end-June 2026, with R461 million recognised in the period due to timing rules under IFRS, the global accounting standard.

On claims, the group reported weather-related catastrophe losses and other large claims of R1.5 billion, up from R144 million a year earlier. It cited storms in Limpopo in February 2026 and the Western Cape in May 2026 as major drivers. Santam said this was partly offset by a R325 million earnings benefit from a lower reserving confidence level, which is the buffer insurers set aside for uncertain future claims.

The update also pointed to stronger investment performance. Returns on insurance funds benefited from fixed-interest markets and managers beating benchmarks. Separately, shareholder investment returns improved due to lower foreign currency translation losses and a one-off R590 million uplift in its investment in Shriram General Insurance after Sanlam took a majority stake.

Why It Matters

Santam’s update shows how South African insurers are balancing premium growth with higher climate and weather volatility. Large catastrophe claims can pressure underwriting margins and reinsurance costs, even when customer premiums are growing.

Investors will also watch the early performance of Syndicate 1918. Santam reported a maiden underwriting loss of R230 million from the syndicate, but said the loss is largely accounting-timing related and it expects the syndicate to contribute positively on a year-of-account basis.

Santam said its interim results for the six months to 30 June 2026 are expected to be released on or around 3 September 2026.