South Africa’s top insurer posted its highest profit in five years, reporting adjusted headline earnings of 6.69 billion rand ($370 million) for the full year ended December 2024.
The Johannesburg-based company attributed its strong performance to increased demand for its short-term insurance and wealth management products, particularly in its home market.
The results, announced in a press statement on Tuesday, marked a 14% rise from the previous year and exceeded analysts’ forecasts of R6.6 billion ($365.2 million).
Earnings per share climbed 17%, supported by a 1-billion rand share buyback programme that reduced the weighted average number of outstanding shares. The insurer also declared a final dividend of 52 cents per share, bringing the total payout for 2024 to 86 cents—just below the consensus estimate of 89 cents.
A modest economic rebound in South Africa contributed to the insurer’s gains, as improvements in state-run power utility operations and increased infrastructure spending supported business activity.
However, high household debt—standing at 62.2% of disposable income—and elevated interest rates remained a drag on consumer confidence.
In its other African markets, performance was mixed.
While fiscal conditions in Kenya improved and Ghana’s debt restructuring neared completion, inflationary pressures weighed on markets such as Malawi.
Currency fluctuations and climate-related risks further challenged operations across the continent.
Gross written premiums rose by 7% to R27.3 billion ($1.5 billion), supported by growth in the insurer’s alternative risk transfer and specialist business portfolios.
Funds under management also expanded by 10% to 1.5 trillion rand, driven by strong equity market gains in South Africa, Malawi, and Kenya.
However, net client cash outflows of R21.5 billion ($1.1 billion) reflected continued pressure in its corporate segment and higher withdrawals in some African markets.
Looking ahead, the insurer expects its new banking unit to be fully operational by the fourth quarter of next year, targeting affluent customers in an increasingly competitive financial services landscape.
It plans to drive growth by optimising costs, enhancing capital efficiency, and expanding its retail market presence.
