Johannesburg – Santam’s conventional insurance business achieved an underwriting margin at the lower end of its target range of 4-8% after some large fire claims in the four months to April 30, said the group in an operational update.
Gross written premium growth of 7% was satisfactory and was achieved in a difficult operating environment, said the group.
The group began processing contingent business interruption (CBI) claims in January 2021, with steady progress made to date on claims where clients had submitted the required documentation.
A large number of clients, who had notified Santam of claims, were yet to submit their final claim quantification documents, the group added.
Santam was one of the insurers that only started processing CBI claims following applications to the high court by claimants.
“Santam’s appeal against the Ma-Afrika judgment, with respect to the length of the indemnity period, is expected to be heard by the Supreme Court of Appeal in the second half of 2021,” said the group.
Given the amount of CBI claims finalized during the period, no significant changes were made to the net CBI provision as at December 31 last year.
