Santam expects earnings to plunge by as much as half
A few large, corporate property claims and drought-related claims have affected the underwriting results
Santam expected headline earnings per share (HEPS) in the year to December to decline up to 49% from the year-ago period, the short-term insurer said on Tuesday.
It attributed the expected decline in HEPS to a stronger rand, which affected its investment returns.
Foreign-currency exchange losses had a significant negative effect on investment returns, offsetting the investment portfolio performance at home.
A few large, corporate property claims and drought-related claims affected the underwriting results.
"The net underwriting margin is expected to be above the midpoint of the long-term target range of 4% to 8% of net earned premiums," the company said.
The share price was little changed in mid-afternoon trade on Tuesday at R238.00 on the JSE, valuing the company at R27bn.
The full-year results were expected on March 2.