Local Politics

South Africa: Santam’s Profit Rockets Despite Paying Out R24.5 Billion in Claims

Despite paying out the highest level of claims in its history, Santam has emerged from the ashes of Covid-19 stronger than before.

South Africa’s largest short-term insurer, Santam, has reported that it paid out a record R24.5-billion for the year to December 2021, including catastrophe claims from large-scale fires, weather events that significantly affected agriculture, and floods in Gauteng and KwaZulu-Natal. At the same time, claims on the motor book and personal lines returned closer to pre-pandemic levels.

Reflecting on the record R24.5-billion paid in gross claims, Santam CEO Lizé Lambrechts said: “Over the past five years, Santam has paid R101-billion in gross claims. We are very pleased to inject money of this scale back into the economy to help stimulate growth and restore continuity of livelihoods. This is the core purpose of insurance.”

However, the economic recovery from Covid-19 lockdowns and prudent financial management saw the company’s profit for the 2021 financial year rocket from R239-million the previous year to R2.3-billion.

Lambrechts said that 70% of the business interruption claims from last year had been either fully or provisionally settled to the tune of R2.2-billion, but the outstanding claims were waiting on full disclosure and details from affected policyholders….

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