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JOHANNESBURG Aug 29 (Reuters) – 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.
($1 = 8.4155 South African rand)
(Reporting by Helen Nymabura; editing by David Dolan)
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