Business

Major South African insurer heading to the UK

Luke Fraser

 ·1 Sep 2025

South African insurer Santam is launching a new UK-based operation as the short-term insurer looks to diversify its business. 

In its results for the year’s first half, the group said it is building a foundation to accelerate international expansion after receiving in-principle approval to set up Santam Syndicate 1918 at Lloyd’s. 

The company will focus on higher-margin specialist lines of business. The group said that the approval from the Lloyd’s Council is a major step in realising its international ambitions. 

A Lloyd’s syndicate is a group of investors or insurance professionals who underwrite insurance risks within the Lloyd’s of London insurance market. It is one of the largest insurance and reinsurance marketplaces globally. 

The syndicate will allow Santam to access Lloyd’s licences to trade in over 75 insurance and 200 reinsurance territories across the globe. 

“International expansion and diversification is a key strategic pillar of Santam to accelerate future growth prospects from a Gross Written Premium and earnings perspective,” the group said previously. 

“Santam’s international operations are currently driven through Santam Specialist Solutions and Santam Re.”

The group noted that the initiative can enhance its growth prospects without incurring the extended investment period typical of greenfield operations. 

The UK-based syndicate will leverage its existing specialist capabilities in South Africa and its strong partnership with SanlamAllianz in the rest of Africa.

The first members of the leadership team in London have been appointed, with extensive experience within the Lloyd’s market. 

The group has also announced that Robert Stuchbery, an executive with extensive experience in Lloyds, has joined the Santam board. 

Santam expects that there will be minimal negative earnings impact in the first year of operations, with a positive earnings contribution in the second year onwards. 

The incremental earnings contribution is expected to reach its return on capital target over the medium term. 

Business at the Santam Syndicate is expected from 1 January 2026, subject to the regulatory environment.

Financial results 

The group’s financial results exceeded its longer-term targets for all key financial performance indicators. 

The group was pleased by strong growth in gross written premium (GWP) and net earned premium (NEP), an underwriting margin above the upper end of the 5% to 10% target range and annualised return on capital well above the 24% target. 

Underwriting margin of 11.3% was above the target range (June 2024: 6.5%)

MiWay’s strategic initiatives also gained traction, contributing to a 14% growth in its GWP and an underwriting margin of 10.9%. 

The group said its FutureFit 2030 strategy created a solid foundation for facing a challenging operating environment.

“Growth prospects in South Africa were dampened by lacklustre economic growth, no meaningful change in employment levels and pressure on personal disposable income following a period of elevated inflation and interest rates.” 

“Consumer financial health has begun to improve in line with the recent easing of inflation and monetary policy, albeit with a delayed impact on spending patterns.” 

The group remains focused on South Africa to retain its leading position on the broker distribution channel across personal, commercial, and specialist lines of business. 

“We also continued to roll out the remaining underwriting actions implemented in response to high claims inflation and frequency, aimed at fully restoring the underlying profitability and earnings momentum of the in-force book.” 

Overall, the group’s earnings per share jumped by 20% to 1,873 cents per share. Headline earnings per share also increased by 19% to 1,873 cents per share. 

The group declared an interim dividend of 590.00 cents per share, a 10% year-on-year increase.