Sasria receives clean audit fifth year in a row

State-owned Sasria is well capitalised and equipped to deal with current and future liabilities

31 October 2018 - 13:40
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One of the roads that were damaged during a protest in Puntans Hill, Durban, on September 10 2018.
One of the roads that were damaged during a protest in Puntans Hill, Durban, on September 10 2018.
Image: Jackie Clausen

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.

Sasria managing director Cedric Masondo says: “I am pleased to say that Sasria remains well governed and profitable, with a healthy balance sheet that is capable of meeting its current and future liabilities.

“The positive results achieved in 2017–18 helped us cope with the influx of claims that we have received in the current financial year. We are happy to report that Sasria has an asset value of R8bn and adequate reinsurance. We are well capitalised and equipped to deal with current and future liabilities. Operationally we have aligned ourselves to ensure that we deliver on our brand commitment to strive for excellence with the customer always at the centre of everything we do,” he says.

While continuing to work towards excellence and the goals outlined in the National Development Plan to eradicate poverty and reduce inequality within the next decade, Sasria spent R25m on corporate social investment. The company is committed to contributing to national transformation and the stability of the gross domestic product.

Its core business is mandated to restore businesses to the position they were at before any special-risk-related loss through valid claim payouts. In doing this, it helps restore economic stability and prevents numerous job losses.

For more information, visit the Sasria website at www.sasria.co.za.

Sasria is a an authorised financial services provider (FSP number 39117)

This article was paid for by Sasria.

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