The environment for Santam’s interim results looked a long way from promising. Its main rival in SA short-term insurance, Mutual & Federal, which seemed to be on the mend last year, had reported a R44m underwriting loss. The main culprit was not the usual one for SA short-term insurers — the personal lines motor book — but commercial and corporate property risk, where losses were R50m above the long-term average, and losses at Credit Guarantee, the trade credit insurer, which were R140m worse. Santam sold its share in Credit Guarantee last year and it still has to establish a sizeable trade credit business. But it suffered in other areas — though most of its competitors would love to have the same experience Santam goes through in a bad year. It still achieved a premium growth of 8% and an underwriting margin of 6,4%. This is below the 9% margin shown for the typical insurers in the Financial Services Board report for the three months to March 2016, but the figure is skewed by the d...
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