Our opinion on the current state of SANTAM(SNT)
Santam (SNT) is South Africa's largest short-term insurer, holding about 22% of the market. Unlike life insurers, it does not engage in endowment insurance, annuities, or investment-linked policies. Instead, Santam insures assets such as buildings and vehicles, as well as individuals against risks they cannot afford, such as income loss due to disability or death.
The company covers the first R150m of any claim before relying on its reinsurance policy. It has Level 1 BEE status and employs over 6000 people. Following the Ma-Afrika judgement, Santam increased its provision for contingent business interruption (CBI) claims by R1,7bn.
Santam is widely regarded as one of the JSE's most reliable and high-quality shares. The company was impacted by the civil unrest in July 2021 but has continued to show resilience.
In its results for the year to 31st December 2024, the company reported revenue up 12% and headline earnings per share (HEPS) up 51%. The company said, *"Conventional insurance net earned premium (NEP) growth of 10% to R32.2 billion. Conventional insurance net underwriting margin of 7.6% (3.5% in December 2023). Alternative risk transfer (ART) profit before tax of R781 million (R516 million in December 2023). Return on shareholders' funds of 31.9%."*
The share trades on a P:E of 11,46. Santam exemplifies a blue-chip stock with a strong balance sheet and a long history of steadily improving earnings. Its share price has followed a consistent upward trajectory for the past 39 years—trading at 90c in 1985 and now around R398. Given its stability and long-term performance, Santam remains a solid choice for any private investor's portfolio.
The company covers the first R150m of any claim before relying on its reinsurance policy. It has Level 1 BEE status and employs over 6000 people. Following the Ma-Afrika judgement, Santam increased its provision for contingent business interruption (CBI) claims by R1,7bn.
Santam is widely regarded as one of the JSE's most reliable and high-quality shares. The company was impacted by the civil unrest in July 2021 but has continued to show resilience.
In its results for the year to 31st December 2024, the company reported revenue up 12% and headline earnings per share (HEPS) up 51%. The company said, *"Conventional insurance net earned premium (NEP) growth of 10% to R32.2 billion. Conventional insurance net underwriting margin of 7.6% (3.5% in December 2023). Alternative risk transfer (ART) profit before tax of R781 million (R516 million in December 2023). Return on shareholders' funds of 31.9%."*
The share trades on a P:E of 11,46. Santam exemplifies a blue-chip stock with a strong balance sheet and a long history of steadily improving earnings. Its share price has followed a consistent upward trajectory for the past 39 years—trading at 90c in 1985 and now around R398. Given its stability and long-term performance, Santam remains a solid choice for any private investor's portfolio.
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כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.