Santam: Somewhat more conviction on Lloyd‘s expansion

Research evidence excerpt

Santam: Somewhat more conviction on Lloyd‘s expansion

Global Research

13 July 2026ab

Santam Equities

South AfricaSomewhat more conviction on Lloyd's expansion

Insurance, Property & Casualty

12-month rating Neutral

UK visit provided comfort to the Lloyd's strategy

We recently met with Lloyd's focussed underwriters (Hiscox and Lancashire), ASTA 12m price target 45,000RCnt

(Santam's managing agent) and Deloitte consulting and visited the Lloyd's marketplace

to help us assess Santam's Lloyd's syndicate expansion. We have increased conviction

Price (10 Jul 2026) 39,645RCnt

around Santam 1918 driving top line growth (adding c2-3% to the 5-year

GWP CAGR) while being able to manage the cycle, and see its targeted 10% margin RIC: SNTJ.J BBG: SNT SJ

achievable in the medium term all resulting in the group margin above the mid point of

Trading data and key metrics

its 5-10% target range (UBSE 7.8% for FY28E).

52-wk range 45,170RCnt-36,220

Key takeaways regarding Lloyd's marketplace business Market cap. R47.1b/US$2.89b

Shares o/s 119m (ORD)

All parties suggested that the key critical determinant of success is the quality of

Free float 40%

underwriting talent in the syndicate. Santam has recently hired specialist property

underwriter Nigel Tatlock from Liberty Specialty Markets where he most recently served Avg. daily volume ('000) 75.9

as head of worldwide property. Liberty's syndicate has delivered average underwriting Avg. daily value (m) R29.5

margins of c11% over the last 7 years which we believe is a solid track record. Lloyd’s Common s/h equity (12/26E) R16.9b

marketplace provides Santam with significant advantages including: 1) scale (c£60bn P/BV (12/26E) 2.6x

GWP market); 2) global licensing reach; 3) capital efficiency; and 4) access to specialist EPS (UBS, diluted) (ZAX)