Santam to post sharp profit hike
Johannesburg - Santam [JSE:SNT] said on Wednesday that it expects its headline earnings per share for the year ended December 2010 to be 40% to 55% higher than those for the prior corresponding period. The increase is mainly due to a substantial improvement in the underwriting performance.
As reported in the Operational update on 1 December 2010, the overall underwriting conditions were "very pleasing", it said, with all major business units performing well. A low frequency of large industrial accident and fire-related claims during this period contributed to a very good underwriting result for 2010.
Performance of the investment portfolio was broadly in line with the equity market movements. The group's solvency margin is expected to be at the higher end of the 35% to 45% target band.
Santam will release its annual audited results on 1 March.