Picture: SANTAM
Picture: SANTAM

Insurance group Santam said on Wednesday that new business growth has slowed significantly, while April saw muted claims as the Covid-19 pandemic kept people in their homes.

The lockdown resulted in a muted claims environment for April 2020, mostly impacting the motor class of business, the group said in a trading update.

Santam and MiWay both provided premium refunds and discounts on motor policies, as well as other premium relief support to personal and commercial policyholders, amounting to R327m. Support of R42m is also being provided to small, medium and micro-enterprises, and other suppliers, the group said.

“The lockdown and economic slowdown negatively impacted premium growth as new business acquisition reduced significantly,” the group said. “Targeted interventions were introduced to contain operational costs in the current challenging economic environment.”

In afternoon trade on Wednesday, Santam’s share price was up 2.3% to R282.30, having fallen 2.7% so far in 2020.