Santam Ltd. provided earnings guidance for the six months ended June 30, 2012. For the period, the company expected earnings as well as headline earnings per share to be 25% to 35% below those reported for the prior corresponding period. The lower earnings are due to the impact of a substantial increase in the taxation charge due to Secondary Tax on Companies on the special dividend paid in March as well as the effect of the increase in the Capital Gains Tax inclusion rate on deferred taxation.

Profit before tax is expected to be marginally higher than the prior reporting period. The company reaffirmed that its underwriting result was below the excellent margin achieved in 2011, but remained within the target range of 5% to 7%.