Drought affecting Santam’s reinsurance program

The drought period that continues to affect South Africa has strained the results of Santam’s agricultural class of business. Over the first half of the year, the insurer has received compensation claims totaling 469 million ZAR (31.2 million USD), 231 million ZAR (15.4 million USD) of which were drought-related claims.

Over the first half of the year, Santam’s gross results, that is before-reinsurance, will be seriously affected by this event. The insurer detains the biggest market share in terms of agricultural risks in South Africa. In 2015, its net profits amounted to 8 million ZAR (519 000 USD) in this segment for gross premiums of 108 million ZAR (7 million USD).

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