Sasria SOC Limited
Despite the turmoil Sasria delivers impressive results
The increase in service delivery strikes, labour unrest and student riots have had a significant impact on South Africa’s economic performance in 2015 and 2016. Yet, despite the increase in insurance claims related to these incidents, Sasria SOC Limited (Sasria), the state-owned company that provides insurance cover against these types of special risks, has delivered strong financial results in its Integrated Report for 2016.
Sasria received a total of 2 262 claims during 2015/2016. 74% of total claims arose from service delivery protests and 10% of claims were related to student protests. It already paid over R110 million for damages caused by service delivery protests. The biggest single claim it received amounts to R103 million. During the same reporting period Sasria received over 200 claims from variously motivated student protests across the country. The claims that Sasria received from the different institutions totalled over R134 million.
The frequency of claims Sasria received over a two-year period increased by 51%.
“Solid in times of turmoil”
Sasria’s integrated report is aptly titled, “Solid in times of turmoil” and reveals how, despite the volatile situation, Sasria outperformed the short-term insurance industry average in premium growth by 1.8%. Its gross written premium, increased by 10.6% to R1.68 billion. In addition, assets under management increased to R6.2 billion.
According to South African Finance Minister Pravin Gordhan, Sasria’s strategic mandate extends beyond remaining profitable. The special risk insurer must use the profits it generates to eliminate poverty and reduce inequality by 2030 as required by the goals outlined in the National Development Plan. To achieve these goals, Sasria spent R22.2 million on corporate social investment and a further R4.7 million on employee learning and development.
Gordhan says, “Significant achievements in this regard include the development of innovative and affordable products for the uninsured market in our country, 13% of whom lack access to basic financial services. Beginning in the new financial year, Sasria will offer financially excluded individuals, families and small business owners the opportunity to become part of formal financial networks, thereby creating stronger economic opportunities for those who previously lacked access to basic financial services.”
Cedric Masondo, Managing Director of Sasria reports, “Sasria is financially strong, and we are able to sustain our performance because we are a responsible, disciplined, well-governed and professional company. We are ready for the future, and we are looking forward to delivering even more effectively on our government’s expectation of us as a state-owned company.
In 2017 and beyond, Sasria’s strategic focus will remain firmly centered on consolidating its current position of leadership by intensifying efforts to ensure a sustainable performance and accelerate transformation in South Africa.
Sasria is an authorised Financial Services Provider with FSP License number: 39117