Santam FY HEPS up 27%

South African insurer, Santam, has reported a significant jump in net income by 64% for the 2023 financial year. Despite this positive news, the company cited the challenge of rising reinsurance costs following substantial losses experienced globally and locally since 2020. To delve deeper into the company's performance and the outlook for the future, Charisse Ras, Chief Risk Officer at Santam Insurance, joined CNBC Africa for an exclusive interview. Ras highlighted the various challenges faced by the company, including natural catastrophes such as floods, hail events, and earthquake losses in different regions. She emphasized the importance of good underwriting management and proactive risk mitigation strategies to navigate the tough operating environment. Ras also addressed the issue of claims inflation, noting that Santam managed to offset rising inflation through premium rate increases and collaboration with policyholders to reduce risks. Despite a dip in margins from 5.1 to 3.5, Santam remains steadfast in its target range of 5 to 10% for the next period, focusing on underwriting actions to achieve this goal. When discussing market trends, Ras highlighted the pressure on consumers due to the challenging economic environment, stressing the need for sustainable premium increases and building partnerships with policyholders to bridge the risk protection gap. Santam's international diversification strategy, particularly through Santam Rebusiness and specialist businesses, aims to expand its footprint globally and diversify its exposure. Looking ahead to 2024, Santam is optimistic about continued growth in international markets. Despite the tough operating environment, Santam remains resilient and focused on delivering value to its stakeholders. With a clear strategic direction and prudent risk management practices, the company is poised for sustainable growth in the years to come.