SASRIA’s GWP increases by 8.8% for year ended 31 March

• ·         Gross written insurance premium up by 8.8% to R2,1 billion
• ·         Net Insurance claims up by 138.1% to R1.5bn
• ·         Combined loss ratio up by 73% to 114.7%
• ·         Net loss of R73 million before tax
• ·         Total assets under management up by 5.7% to R8,4 billion
• ·         SAM Solvency ratio of 270%

Johannesburg - State-owned short-term insurer Sasria SOC Ltd (Sasria) has reported an 8.8% increase to R2.1bn in Gross Written Premiums (GWP) for the year ended 31 March 2019 compared with R1.9bn achieved in the previous year. The company stated that this growth, achieved on the back of a subdued economic growth trajectory, has been pleasantly welcome by the Parliament of South Africa.

The company stated that it received a record number of claims received totalling over R1.5bn for the year ending 31 March 2019, up from R662m in the financial year 2018 mostly attributable to service delivery protests which accounted for 80% of the claims, while labour strikes accounted for the balance. The balance sheet remains strong, with total assets worth R8.4bn, up 5.7% from a year ago, ensuring the ability to honour current and future claim obligations. Sasria currently holds 2.7 times the amount of capital that the Prudential Authority requires Sasria to hold. In the last five years, Sasria received over 16 000 claims valued at over R4.6bn.

Sasria Managing Director, Mr Cedric Masondo said: “We are committed to stretching our strategic goals to deliver on the transformation mandate, while continuing to provide cover against special risks. Sasria has delivered on its five-year strategy to serve as a mature, professional and financially sustainable organisation. The company has once again earned a clean audit for its operations and activities for seven years running.”

The figures presented to Parliament in Sasria’s Integrated Report for 2019 had the Minister of Finance Tito Mboweni lumping the company with praises for having achieved a solid performance in a year of challenging conditions. The Minister stated: “Sasria achieved financial sustainability with its assets and is able to withstand very high demands in terms of the special risks it covers. Despite record claims, Sasria has consistently delivered strong financial results compared to the insurance industry over the years. It has not burdened the fiscus and has instead made a valuable contribution through its socio-economic development initiatives, taxes and dividends paid to the shareholder.”

Sasria was created in response to riots and civil unrest during the apartheid era. When insurance companies balked at paying compensation to ordinary businesses damaged by the protesting public, companies and individuals were left in the latch without any possibility of recovering the damaged possessions. The organisation has played and continue to play a vital role in supporting the stability of the economy by being the only short-term insurer providing affordable cover against such risks of civil commotion, public disorder, strikes, riots and terrorism to any individual, business, government or corporate entity with assets in South Africa.