Half Year 2024 Santam Ltd Earnings Call Transcript
Key Points
- Santam Ltd (NAM:SNM) achieved an 8% growth in business, reflecting improved underwriting performance.
- The company's net income increased by 34% compared to 2023.
- Return on capital reached 33.6%, surpassing the target of 24%.
- The alternative risk transfer and partnerships business generated ZAR226 million in earnings.
- A special interim dividend of $5.35 was announced, marking an 8.1% increase over the same period last year.
- Claims inflation remains stubbornly above CPI inflation, putting pressure on the motor value chain.
- Weather-related claims have significantly impacted results, with higher intensity and volume of rain causing flash floods and property damage.
- The consumer market remains under significant pressure, affecting overall demand.
- The property class continues to require attention due to ongoing challenges and large claims.
- The MiWay business, while showing growth, has not achieved the desired increase in policy numbers and faces intense competition.
Good morning, everyone, and welcome to our interim financial results presentation for the period ended June 30, 2024. I'm joined this morning by our Group CFO, Wikis Olivier; and our Head of Strategy and Investor Relations, Thabiso Rulashe.
A good starting point for us is the operating environment. The operating environment for the first half of 2024 remains difficult and challenging. However, we are encouraged by the positive investor sentiment that we have seen after the election results earlier on in the year. We also encouraged by the reduction in load shedding and the signs of inflation starting to show signs of reducing.
However, although we've seen CPI start to show signs of improving, claims inflation does remain stubbornly above CPI inflation, and there is pressure in the motor value chain. Additionally, if we look at the consumer, the consumer remains additionally also under significant pressure. Globally, it has been a year of elections, and we do see that geopolitical risks do remain elevated
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