Tax charge weighs on Santam's H1 earnings

Comment on this story

JOHANNESBURG - South African short-term insurer Santam posted an expected 29 percent drop in half-year earnings on Wednesday due to the impact of a significant increase in the taxes.

Santam, which is majority owned by life insurer Sanlam , said headline earnings per share came in at 415 cents in the six months to end-June from 584 cents a year ago.

Headline earnings, the main gauge of profit in South Africa, exclude some one-time items.

The insurer had flagged that earnings would be at least 25 percent lower.

Its income tax charge rose by over 84 percent from the previous year, mainly due to the tariffs levied on a special dividend pay out.

South Africa's largest property and casualty insurer's net insurance premiums rose 10 percent to 7.7 billion rand ($914.98 million) from a year earlier. Underwriting came in 21 percent lower at 471 million rand, while investment income rose 12 percent to 337 million rand.

Santam, which has interests in at least six other African countries, declared a 230 cents dividend for its half-year, compared with 200 cents previously.

Its shares dropped 3 percent to 172.01 rand on the news, compared with a 0.17 percent fall in Johannesburg's All-share index. - Reuters

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines