05 October 2017
Sasria remains resilient and profitable
Sasria – the state-owned short-term insurer established in 1979 to provide special risks cover for individuals, businesses and municipalities – continues to show resilience. The insurer delivered a healthy profit for the financial year ended 31 March 2017.
The financial highlights for the period under review include:
- Gross written premium up by 9.5% to R1.84 billion
- Net insurance claims up by 30.6% to R767 million
- Net underwriting profit down by 17.2% to R357 million
- Combined loss ratio up from 71% to 78%
- Profit before tax up 5% to R744 million
- Assets under management of just under R7 billion
- Solvency ratio of 246%
The company recorded a 5 percent rise in profit before tax to R744 million for the financial year ended 31 March 2017. This was driven by an increase in gross written premium and strong performance in investment income.
“We are very pleased with our performance as it was achieved under difficult operating conditions,” says Sasria managing director Cedric Masondo. “Within the period under review, South Africa experienced high levels of service delivery protests. This was in part responsible for the 30.6 percent rise in net insurance claims, which amounted to R767 million – with student protests accounting for R300 million.”
Masondo adds that despite a persistently difficult operating environment, the company remains in a strong financial position with assets under management of just under R7 billion (an increase of 7.4 percent) and a solvency ratio of 246 percent. Total equity is up by 7.3 percent to R5.7 billion.
Sasria, like all other insurance companies, operates within a well-developed framework and is regulated by the Financial Services Board.
“Unlike private sector insurance companies, however, Sasria has a dual mandate, which includes providing short-term cover for special risk events as well as making a positive contribution towards the transformation of the financial services industry in line with the goals of the National Development Plan,” says Masondo.
In his review of the integrated report, Minister of Finance, Malusi Gigaba, indicates that the financial stability of state-owned companies should remain a top priority for government. “State-owned companies need to have strong balance sheets and must be well managed in order to serve as engines or enablers of inclusive growth,” he says.