For the fifth year in a row, state-owned short-term insurance company Sasria has received a clean audit. Coupled with the company’s outstanding financial results, which guarantees the company is well capitalised to meet current and future liabilities.
It is the only company that covers special risk in SA. Hailed earlier this year as a well-run state-owned company, it provides cover for incidents such as riots, labour unrest, service delivery protests and terrorism on South African soil. This unique and affordable cover is available to all individuals, businesses and government entities that own assets in the country.
Special-risk cover is different from traditional insurance cover as it caters for extraordinary, unpredictable and at times prolonged risk. Through a commitment to excellence, Sasria achieved positive financial results in the past year despite the difficult and changing socioeconomic and political climate, according to the 2017–18 Integrated Report recently tabled in parliament.
Sasria recorded underwriting profit of R580m – an increase of 62.2 % compared with the previous financial year. Net profit before tax increased by 83.7% to R1.37bn. These positive results can be attributed to an increase of 8.2% (R1.994bn) in gross written insurance premiums.
Furthermore, net insurance claims were down by 13.5% to R663m. Investment income was up by 96.4% to R812m, and assets under management increased to R7.6bn. This is just a glimpse of the confident results the company boasted in its Integrated Report, which is publicly available.
Such results inspire confidence in both Sasria staff and clients and in SA as a whole, as the company has a distinctive role to play in protecting the nation’s assets. The exhibition of its financial stability encourages further confidence to withstand the high demands of the special risks it covers. The company is a self-sustaining and self-sufficient state-owned entity that does not ask for any government guarantee.
This financial year alone, Sasria has experienced an influx of new claims. In the first four months since April, the company received more than R1bn-worth of new claims from asset owners – mainly as a result of service delivery protests. However, based on its financial results, its dedication to excellence, good governance and management, financial stability, sufficient capacity and adequate reinsurance with A-rated companies, Sasria is certain it will meet its current financial obligations. Read more