Santam expects earnings to soar
Johannesburg - Short term insurer Santam [JSE:SNT] said Monday that it expects its earnings per share and headline earnings per share for the six months ended June 2010 to be between 75% and 85% higher than those of the prior corresponding period, mainly due to a substantial improvement in the underwriting performance.
The overall underwriting conditions were satisfactory at acceptable margins. The diversity of Santam's business and an absence of large industrial claims during the reporting period contributed to the improved results, it said.
Performance of the investment portfolio was broadly in line with the equity market movements but the investment result has been positively impacted by the accounting treatment of the derivative fence structure which substantially matured during the second quarter.
Interest rate returns, albeit lower than last year, continue to contribute positively to income. The group's solvency margin comfortably remained at the top end of the target band of 35% to 45%.
Santam will release its results on September 1.
- I-Net Bridge