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The Life insurance Industry Including Reinsurance Updated Report Available
BY Carole Veitch
South Africa
02 December 2015
R 2 040.00 (ZAR)  
estimated $ 145.51 (USD) *
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Life Insurance Sector


This report focuses on the latest developments in South Africa’s life insurance sector, which is the largest life insurance market on the African continent and in US dollar terms is the 15th-largest life insurance market in the world. With benefit payments of R366.8bn and assets of R2.3-trillion in the 12 months ended 30 June 2015, the 73 companies active in the long-term insurance industry are the custodians of a sizeable portion of South Africa’s long-term savings pool. Total net life reassurance premiums of over R8bn at the end of December 2014 were reported by the seven life reassurance companies in operation.


Current Conditions


If premiums are measured as a percentage of the nation’s GDP, the country has one of the highest levels of life insurance penetration in the world. However, recent statistics reveal that 40% of the country’s adult population do not have any form of formal life insurance. This is in sharp contrast to the funeral policy category which accounts for almost 90% of all risk cover sold and emphasises the need for the development of affordable life insurance products for low-income earners. Analysts caution that if South Africa’s life insurance industry is to remain sustainable in the long-term, the socio-economic context in which it operates needs to be overhauled. In the meantime, the potential for growth in sub-Saharan African markets has resulted in brisk merger and acquisition activity by South Africa’s major life insurance companies.


Report Coverage


The report on the highly competitive South African Life Insurance sector describes the current market, Government’s proposed regulations regarding credit life insurance and discusses factors influencing the success of the sector. The report profiles 44 companies, including the “Big Four”, Old Mutual Life, MMI Holdings, Sanlam and the Liberty Group. Also profiled are all seven reassurance companies active in the country and the leading direct life insurance company, Clientèle Life Assurance Company Ltd.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 11
4.1.2. Regulations 14
4.1.3. Enterprise Development (ED) and Socio-Economic Development (SED) Initiatives 18
4.2. Continental 21
4.3. International 22
5. INFLUENCING FACTORS 24
5.1. Economic Environment 24
5.2. Socio-Economic Environment 25
5.3. Input Costs 26
5.4. Technology 26
5.5. Research and Development (R&D) 27
5.6. Innovation 27
5.7. Labour Resources 28
5.8. Cyclicality 30
5.9. Environmental Concerns 31
5.10. Over-Regulation 31
5.11. Fraud 31
6. COMPETITION 32
6.1. Barriers to Entry 33
7. SWOT ANALYSIS 34
8. OUTLOOK 35
9. INDUSTRY ASSOCIATIONS 35
10. REFERENCES 36
10.1. Publications 36
10.2. Websites 37
COMPANY PROFILES 39
1LIFE INSURANCE (RF) LTD 39
ABSA LIFE LTD 41
AFRICAN UNITY INSURANCE LTD 43
AIG LIFE SOUTH AFRICA LTD 45
ALEXANDER FORBES LTD 47
ALLAN GRAY LIFE LTD 51
ASSUPOL LIFE LTD 53
AVBOB MUTUAL ASSURANCE SOCIETY 55
BIDVEST LIFE LTD 57
BOPHELO LIFE INSURANCE ADMINISTRATORS (PTY) LTD 59
BRIGHTROCK LIFE LTD 60
CLIENTELE LIFE ASSURANCE COMPANY LTD 62
COMMUNITY LIFE INSURANCE COMPANY LTD 64
CORONATION LIFE ASSURANCE COMPANY LTD 65
DISCOVERY LIFE LTD 67
FEDGROUP LIFE LTD 70
GENERAL REINSURANCE AFRICA LTD 72
GIC RE SOUTH AFRICA LTD 74
GUARDRISK LIFE LTD 76
HANNOVER REINSURANCE GROUP AFRICA (PTY) LTD 78
HOLLARD LIFE ASSURANCE COMPANY LTD 80
INVESTEC ASSURANCE LTD 83
INVESTMENT SOLUTIONS LTD 84
LAND BANK LIFE INSURANCE COMPANY SOC LTD 87
LIBERTY HOLDINGS LTD 89
LION OF AFRICA LIFE ASSURANCE COMPANY LTD 93
MMI GROUP LTD 95
MUNICH REINSURANCE COMPANY OF AFRICA LTD 98
NEDGROUP STRUCTURED LIFE LTD 100
OLD MUTUAL LIFE ASSURANCE COMPANY (SOUTH AFRICA) LTD 102
OUTSURANCE LIFE INSURANCE COMPANY LTD 106
PROFESSIONAL PROVIDENT SOCIETY INSURANCE COMPANY LTD 108
PRUDENTIAL PORTFOLIO MANAGERS (SOUTH AFRICA) LIFE LTD 111
PSG ASSET MANAGEMENT HOLDINGS (PTY) LTD 113
RAND MUTUAL ASSURANCE COMPANY LTD (THE) 115
REGENT LIFE ASSURANCE COMPANY LTD 119
RGA REINSURANCE COMPANY OF SOUTH AFRICA LTD 122
SANLAM LIFE INSURANCE LTD 124
SCOR AFRICA LTD 129
STANDARD GENERAL INSURANCE COMPANY LTD (THE) 131
STRATEGIC INVESTMENT SERVICE LIFE COMPANY LTD 134
SWISS RE LIFE AND HEALTH AFRICA LTD 135
SYGNIA LIFE LTD 137
UNION LIFE LTD 139