Why Santam is arguably the best of them all
The property book swung from a R165m loss to a R519m surplus. The motor book’s surplus rose 37% to R1.18bn
Much of the insurance game is about luck, for both the insurer and the client. Many customers of market leader Santam — which has about a 22% market share — would have insured for 2017’s catastrophes such as the Knysna fire and widespread hailstorms in Gauteng. The key measure for short-term insurers is the underwriting ratio, or the surplus left over once claims and expenses have been paid. For Santam this increased from 6% in 2017 to 9.2% in the year to December 2018. Insurers can reduce the volatility of returns through reinsurance, which Santam has maintained at about 18.5% of premiums, mainly for catastrophe cover. Santam CEO Lizé Lambrechts says: "We also helped our returns … by helping our clients manage their commercial fire risks, and by cancelling cover in the most risky cases." She says that there is still a sizeable risk protection gap; it is estimated that only a third of the cars on SA’s roads are insured.
Yet gross written premium was up a modest but satisfactor...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.