Avbob AGM highlights how the group is unlocking shared value for members
The group’s results for the 2023 financial year reflect a strong performance in difficult economic conditions
The 2023 financial year was characterised by severe economic challenges with increased pressure on growth prospects. The need to create value and sustainable economic development in SA is imperative and necessitates purpose-driven innovation to address high levels of unemployment and inequality.
Jannie Venter, chair of the Avbob Group — Avbob Insurance, Avbob Funeral Service and Avbob Industries — underscored the importance of value creation for society during Avbob's 72nd AGM on November 22 in Pretoria.
“A commitment to the common good forms the foundation of our mutual society. As a business, we have always served the needs of South Africans beyond our core purpose as a provider of funerals and funeral insurance. Our mutual status drives our ethos, our purpose, and our competitive differentiation,” said Venter.
The group fulfilled its commitment to policyholders by disbursing R2.7bn in policy benefits during the 2023 financial year. Furthermore, Avbob Funeral Service extended support to members by providing free services and products to the value of R453.3m.
Making a difference is important to Avbob. As Africa's largest mutual society, the group recognises and accepts the responsibility to ensure its activities and operations remain beneficial to its members and the communities in which it operates.
Quality service and expansion
Avbob CEO Carl van der Riet outlined the core aspects of the group’s business strategy to enhance growth and value creation for members. “Attracting customers with innovative market-appropriate products and quality service is key. The group continues to invest in expanding our national footprint to grow our market share and focus on value-generating business areas.”
The group continues to invest in expanding our national footprint to grow our market share and focus on value-generating business areasAvbob CEO Carl van der Riet
Van der Riet further highlighted that the group will build on the gains already achieved to accelerate growth and strengthen its capacity to pursue new opportunities through product, service and channel diversification.
Some of the initiatives in the pipeline include an innovative member rewards programme for 2024, diversification into the financial services sector, and the evolution of the iconic Avbob logo.
A new head office in 2024
The past year marked the final chapter of the Avbob head office being located in the Pretoria central business district. In 2024, the group's head office is relocating to new, state-of-the-art premises at the Irene Link Precinct in Centurion. The building is sustainable, fit-for-purpose and Green Star rated to meet its business requirements and house a hybrid workforce.
Highlights of the 2023 financial year:
- Premium income increased by 8.6% to R6.2bn;
- Total assets grew by 13.6% to R39.8bn;
- The number of policyholders increased by 2.3% to 2.6-million with 8.6-million individual lives assured as at June 30 2023;
- The national footprint of funeral service, insurance and client service offices increased to 379; and
- The society invested R861.6m in targeted investment and black business growth opportunities.
Awards and achievements:
- Top Employer for the sixth consecutive year (announced in November 2022).
- Ask Afrika Icon Brands — winner of the Funeral Cover category.
- The Star/Pretoria News Readers’ Choice Awards — winner in the Best Funeral Insurance Company category.
- 2022/2023 Ask Afrika Kasi Star Brands benchmark survey — category winner.
- 2022 Best of Bloemfontein — award for Best Funeral Service Provider in the Services section.
- Die Burger Jou Keuse (Your Choice) competition — winner.
- Rapport Leserskeuse 2022 Toekennings (Readers’ Choice Awards) — winner in the Funeral Cover category.
This article was sponsored by Avbob.