Santam expects earnings to plunge 44%-49%
Santam expected headline earnings per share in the year to December to decline up to 49% from a year-ago period, the short-term insurer said on Tuesday. It attributed the expected decline in headline earnings per share to a stronger rand which affected its investment returns.
Foreign-currency exchange losses had a significant negative effect on investment returns, offsetting the investment portfolio performance at home.
A few large corporate property claims and drought-related claims affected the underwriting results.
"The net underwriting margin is expected to be above the midpoint of the long-term target range of 4% to 8% of net earned premiums," the company said.
The share price was little changed in mid-afternoon trade at R238 on the JSE, valuing the company at R27bn.
The full-year results are expected on March 2.
Source: BDpro