One of South Africa’s biggest insurers is heading to the UK
Santam will launch a UK-based business later this year, as the group is looking to expand internationally and diversify.
Santam said that it received in-principle approval to launch a UK-based Lloyd’s syndicate.
A Lloyd’s syndicate is a group of investors or insurance professionals who underwrite insurance risks within the Lloyd’s of London insurance market.
Santam said the initiative has also received the relevant regulatory approvals in South Africa.
It said that final approval and permission to underwrite by Lloyd’s are expected in Q4 2025.
“International expansion and diversification is a key strategic pillar of Santam to accelerate future growth prospects from a Gross Written Premium and earnings perspective,” it said.
“Santam’s international operations are currently driven through Santam Specialist Solutions and Santam Re.”
It noted that Lloyd’s is one of the largest insurance and reinsurance marketplaces globally.
It added that the initiative has the potential to enhance Santam’s future growth prospects, without incurring the extended period of investment typical of greenfield operations.
The Santam Syndicate will leverage its existing specialist capabilities in South Africa, as well as Santam’s strong partnership with SanlamAllianz in the rest of Africa.
The syndicate will enable access through Lloyd’s licences to trade in roughly 77 insurance and 200 reinsurance territories across the globe.
Santam appointed the first members of its leadership team based in London, with extensive experience within the Lloyd’s market. The team will be augmented over the remainder of the year.
Santam’s business plan anticipates a minimal negative earnings impact in the first year of operations.
This is mainly due to the negative earnings impact in the first year of operations on the back of delayed recognition of written premiums. A positive earnings contribution is expected in the second year onwards.
The incremental earnings contribution should reach its return on capital target over the medium term.
The Santam Syndicate aims to start underwriting later this year, with business incepting from 01 January 2026, subject to the regulatory environment.
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