In 2008 earnings per share were 89 cents.
Personal and commercial business is put under alot of pressure by increased claims and associated costs.
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Headline earnings per Santam share grew 219% at 284 cents, after the
group's interim report showed better overall performance.
The improvement was put down to better investment returns.
Headline earnings per share in 2008 were a dismal 89 cents.
Net underwriting results dropped to R88 million (compared to R326 million in
2008). This was put down in part to the negative margins experienced in
property and motor.
"Although the margins in commercial motor remain satisfactory, personal lines
motor experienced negative underwriting margins," explained the Chief Executive
of Santam, Ian Kirk.
Kirk said that increased claims and associated costs had placed personal and
non specialist commercial business under a lot of pressure.
"In addition, we did not escape the large number of industrial accident and
fire related claims which were felt throughout the industry evidenced by the
negative return of the property class," he added. "On the positive side, the
liability, engineering and crop business units continued to perform well."
Kirk discussed the forecast for the rest of 2009. "For the second half of the
year, underwriting margins are expected to remain under pressure, although the
likelihood of a repeat of the high value property fire claims during the first
half of the year is considered to be low. It is anticipated that the market will
remain soft for both commercial and personal lines business as the recovery of
the domestic economy is not expected before 2010."
"Against this background," he added, "the low level of disposable income for
individuals and pressure on business increasingly hinder achievement of an
appropriate rate for the risk insured."
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