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Santam reports surge in profit

Mar 01 2011 14:54 Reuters

Company Data

Santam Ltd [JSE : SNT]

Last traded R168.00
Change R-0.05
% Change -0.03%
Cumulative volume 33,113
Market cap R20.05bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Sanlam Ltd [JSE : SLM]

Last traded R32.96
Change R0.30
% Change 0.92%
Cumulative volume 3.71m
Market cap R69.22bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Liberty Holdings Ltd Ord [JSE : LBH]

Last traded R88.00
Change R0.42
% Change 0.48%
Cumulative volume 414,437
Market cap R25.19bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - South African insurer Santam [JSE:SNT] reported a 51% jump in full-year profit on Tuesday, helped by a recovery in underwriting, and said it expects underwriting margins to decline.

Santam, South Africa's largest property and casualty insurer, said diluted headline earnings per share (EPS) totalled 1 343 cents in the year to end-December compared with 889 cents a year earlier.

The results were widely expected after Santam said last month it expected headline EPS to rise by as much as 55%.

Santam, which is majority owned by life insurer Sanlam [JSE:SLM], said it was helped by a recovery in its underwriting business and few large industrial accidents and fires.

The company said net insurance premium revenue totalled R13.5bn, compared with R12.9bn a year earlier.

South African insurers have begun to recover after being hit hard by a 2009 recession that led to a million job cuts and ballooning household debts, causing customers to lapse on policy payments.

The sell-off in equity markets after the global economic crisis hit investment portfolios.

Santam said it expected underwriting margins to decline to a range of 4% and 6% in 2011 due to the weakening rand and higher claim costs after floods spread across the country earlier this year.

Life insurer Liberty Holdings [JSE:LBH] last week reported a surge in full-year profit as fewer of its customers lapsed on payments.

Shares of Santam were down 0.83% by 14:14, compared with a 0.2% fall in Johannesburg's All-share index.

 
 
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