South African Insurer Santam Reports Strong 2025 Profits and Signals Strategic Global Reinsurance Expansion

Santam records a 10% net income rise in 2025 and launches a new Lloyd’s syndicate to spearhead its international reinsurance and diversification strategy.

By: AXL Media

Published: Mar 9, 2026, 6:14 AM EDT

Source: The information in this article was sourced from Reinsurance News

Underwriting Discipline Drives Record Margins

Santam Limited, the dominant force in South Africa’s general insurance market, concluded 2025 with a significant improvement in its core underwriting profitability. The group reported a combined ratio of 88.7%, a figure that notably outperformed its long term target range of 90% to 95%. This performance was underpinned by a net insurance result of R5.26 billion, representing a 61% increase over the previous year. Group CEO Tavaziva Madzinga attributed these gains to rigorous portfolio actions across personal, commercial, and specialist lines, which allowed the firm to capitalize on rising property profitability despite broader economic headwinds.

Expansion of International Revenue Streams

While South Africa remains the primary engine for the group, accounting for 81% of total gross written premiums, the international segment is rapidly becoming a vital strategic pillar. In 2025, the Santam Re and Specialist Solutions divisions reported an 11% increase in non South African premiums, reaching R6.8 billion. This growth reflects a deliberate shift toward geographical diversification intended to mitigate the risks associated with market concentration in a single territory. The group's total gross written premiums rose to R43.96 billion, signaling a healthy trajectory for both its domestic and offshore operations.

The Lloyd’s Syndicate as a Global Catalyst

A defining milestone for the 107 year old insurer in 2025 was the successful launch of Santam Syndicate 1918 at Lloyd’s of London. Management views the Lloyd’s platform as the most efficient and scalable vehicle for pursuing its "FutureFit 2030" strategy. By embedding itself within the London market, Santam aims to collaborate more closely with international brokers and access a truly global client base. This move is expected to transform the company from a regional leader into a significant player on the international reinsurance stage, providing a diversified investment case for its shareholders.