KARL BISHOP The overall business premiums are up 10%, owing to increased rates on portfolios on existing and new businesses
South African insurance group Santam’s 2014 interim results, which were an improvement on those of last year, were said to be supportive of its strategy to improve business in Africa, India and South-East Asia, says head of niche business Karl Bishop.
Better Results“The half-year results were better than last year, owing to the turmoil in the crop and specialist businesses. Crops are in a significantly profitable situation. “The overall business premiums are up 10%, owing to increased rates on portfolios on existing and new businesses, and to the termination of select costly policyholders,” he says.
Gross written premium growth was 7%, includ-ing cell captive insurance, and 10%, excluding cell captive insurance.
There was an underwriting margin of 7.4%, an outlier for the intermediated insurers. The underwriting result was significantly impacted on by crop insurance turnaround. Investment Up
Investment income was 76% more than in 2013 and was positively impacted on by JSE-listed Sanlam division Sanlam Emerging Markets’ revaluation of R63-million; however, it was negatively impacted on by an equities hedge of R93-million.
Santam has a market share of about 23% in South Africa, therefore, it makes strategic sense to do business outside the country’s borders, says Bishop.
“Our products lend itself to growth and development in Africa in infrastructure, roads, harbours and ports. “Our specialist business provides niche business insurance, including engineering insurance, marine insurance and professional indemnity cover. Our products suit African development,” he states.