📊 Santam Limited, a South African multinational general insurance company, has its headquarters in Cape Town, in the Western Cape Province of South Africa.
📊 Santam Limited offers an extensive portfolio of general insurance products and services to its global clientele via a network of 2 700 intermediaries and direct channels.
📊 The company operates in South Africa and Namibia, as well as in a further 31 countries across the globe. The company boasts more than 1 million policy holders comprising individuals, commercial and specialist business owners and institutions.
📊 The company has a market share of more than 20%. Together with its subsidiaries, Santam Limited focuses on short-term insurance products for individual and commercial clients. Its business segments include Santam Commercial and Personal, Santam Specialist and Santam re, its reinsurance provider. Its wholly-owned subsidiaries are MiWay, Mirabilis, Echelon and Centriq.
📊 Santam Limited trades on the Johannesburg Stock Exchange (JSE) under the stock symbol “SNT”. The company enjoys a market capitalization of R27 billion.
📊 Santam Limited has a strong history of attracting blue-chip corporate clients. It currently insures 86 of the top-100 company’s listed on the JSE.
📊 Santam shares have been performing steadily on the liveonline stocks chart. Today, the company employs almost 6 000 people.
📊 Santam Limited’s major shareholders are Sanlam and the Government Employees Pension Fund.
You might also like: SANLAM SHARES
VISION & VALUES OF SANTAM
- The company’s stellar capital management practices and stable dividends policies have enabled it to deliver average annual return on capital of more than 25%. Santam Limited has managed to drive its strong performance through its geographical footprint, brand strength, business diversity and large-scale distribution networks.
- Santam Limited’s purchase of a 30% stake in Morrocco-based Saham Finances at a price of US$400 million, has further cemented its presence on the African continent. Saham Finances operates in 26 countries in North Africa and the Middle East. Although acquisition opportunities in South Africa are limited because of Santam’s dominant position in the country, the company’s key focus remains organic growth. This growth will be driven by intermediary networks, integration opportunities and the continued development of the company’s district distribution channel.
- The company has proven its ability to negate constrained and challenging market conditions faced by financial services companies. In 2015, for example, its full-year profits increased from R1.6 billion to R2.4 billion. This achievement was enabled through solid premiums growth, increased investment income and the expansion of its international operations.
- In 2016, the company’s profits decreased from R1 billion to R762 million due to the Saham buy-in, as well as continued depressed market conditions. Investment income was also significantly lower due to foreign exchange currency losses. Although premiums also decreased due to increased consumer pressure in South Africa, the company’s international diversification efforts continued to bear fruit, with premium in the rest of Africa, India and China increasing to R1.263 billion from R962 million.
- The company has also bought 100% of the share capital of the specialist insurance structuring business, RMB-SI Investments. It is clear that the company’s is positioning itself to negotiate challenging market conditions in a manner that enables growth and adds value for investors. Shareholders can therefore buy or sell company shares in the expectation of dividends and returns on their investment.
MARKET PERFORMANCE OF SANTAM
- Although trading conditions in the South African Insurance industry remain extremely competitive, Santam Limited has proven itself as a dominant presence in the market. The company’s strategic focus remains on growth in South Africa, as well as on increased global diversification.
- The Santam share price has shown a steady performance on the JSE. Analysts agree that Santam shares will continue to yield long-term profits for the company’s investors.
You might also like: RMB HOLDINGS SHARES
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy SANTAM Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN SANTAM STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE SANTAM STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of SANTAM stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy SANTAM stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
Read more about : REUNERT SHARES