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\t\t<\/span><\/p>\n <\/span><\/p>\n \n \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":" (The following statement was released by the rating agency) Feb 14 – Fitch Ratings has affirmed Santam Limited’s (Santam) National Insurer Financial Strength (IFS) rating at ‘AA+(zaf)’ and National Long-term rating at ‘AA(zaf)’. The Outlooks are Stable. Fitch has simultaneously affirmed Santam’s subordinated debt at ‘A+(zaf)’. The affirmation reflects Fitch’s view that Santam has core […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-7975","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=7975"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7975\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=7975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=7975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=7975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}(The following statement was released by the rating agency)\t\nFeb 14 - Fitch Ratings has affirmed Santam Limited's (Santam) National\nInsurer Financial Strength (IFS) rating at 'AA+(zaf)' and National Long-term\nrating at 'AA(zaf)'. The Outlooks are Stable. Fitch has simultaneously affirmed\nSantam's subordinated debt at 'A+(zaf)'. \t\n\t\nThe affirmation reflects Fitch's view that Santam has core status within the \t\nSanlam group. Although Santam's ratings are primarily based on its core status, \t\nthey also take into account its standalone credit profile. Santam's ratings \t\nreflect its robust capital position, improved performance, diversified product \t\noffering, well-established distribution network and solid risk management. In \t\naddition, the company has a strong and well established position as the largest \t\nnon-life insurer in South Africa with over 22% market share in terms of gross \t\nwritten premiums. Offsetting factors include the intensely competitive South \t\nAfrican market, the tough economic environment and the company's limited \t\ndiversification outside South Africa.\t\n\t\nIn H111 Santam's performance improved with headline earnings up 16% at ZAR670m. \t\nThis was driven a strong underwriting performance of ZAR594m (H110: ZAR533m) \t\nstemming mainly from the motor and property classes generating substantially \t\nhigher underwriting profits (increases of 91% and 42% respectively) in H111 \t\ncompared to the previous year's period. As a result, Santam's underwriting \t\nmargin improved to 8.4% (H110: 8.0%). Santam maintains a solid capital position.\t\nIt reported a regulatory solvency ratio (net asset value\/net premiums written) \t\nof 45% at end-H111 (end-2010: 45%), which is at the high end of the company's \t\nlong-term target range of 35%-45% and well above the minimum regulatory \t\nrequirement of 25%. \t\n\t\nGiven Fitch's view that Santam has core status within the Sanlam group, any \t\nupgrade or downgrade of Sanlam's ratings could be expected to have a similar \t\nimpact on those of Santam.\t\n\t\nIn addition, if Santam was no longer seen as a core part of the Sanlam group, as\t\nwell as a sustained deterioration in Santam's standalone profile in terms of \t\nsustained poor operating performance, sustained deterioration of capital levels \t\nto below a regulatory solvency ratio of 40% with the current asset mix, and\/or \t\nweakening of market position (loss of market share), this could lead to a \t\ndowngrade.\t\n\t\n (Caryn Trokie, New York Ratings Unit)<\/pre>\n