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The Life Insurance Industry including Reinsurance Updated Report Available
BY Carole Veitch
South Africa
22 May 2017
R 6 960.00 (ZAR)  
estimated $ 490.98 (USD) *
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The South African Life Insurance and Reinsurance Industry


The South African life insurance industry contributed R429.3bn to the local economy through benefit payments to policyholders and beneficiaries during the course of 2016 and currently holds assets of around R2.63-trillion. The Association for Savings and Investment South Africa (ASISA) reported that in the 12-month period ended 31 December 2016, premiums, investment and other income totalled more than R577bn, while benefit payments to policyholders and beneficiaries totalled R429.3bn.


A Challenging Environment


Although it remains a well capitalised industry, the country’s challenging socio-economic environment continues to constrain the growth of the life insurance sector. ASISA reported that during the 12-month period ended 31 December 2016, individual policy surrenders rose by 16% year-on-year, new business growth contracted and life insurers posted total income growth of a mere 1%, indicating that local consumers are under growing pressure. Life insurers are also facing regulatory disruption and are confronted with new risks emanating from the recent sovereign credit ratings downgrade of the South African economy to “junk” status. The proposed nationalisation of life insurance companies, as mooted by the recently appointed advisor to South Africa’s new Finance Minister Malusi Gigaba, is widely expected to further dampen investor confidence in the country.


Report Coverage


The report on the Life Insurance and Reinsurance sector focuses on developments during 2016, general trends in the sector and factors that influence the success of role players. Profiles for 37 companies are provided, ranging from the big four traditional companies, Old Mutual Life, the MMI Group, Liberty Group and Sanlam Life Insurance Ltd, to small companies such as Bophelo Life Insurance Ltd and Bidvest Life Ltd. Also profiled are Absa Life Limited which received regulatory approval to acquire a 75% stake in Instant Life, an online life insurance distribution platform, and Hollard Life Assurance Company Ltd which was prohibited by the Competition Commission from acquiring Regent Life Assurance Company Limited from Imperial Holdings.


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 9
4.1. Local 9
4.1.1. Corporate Actions 15
4.1.2. Regulations 16
4.1.3. Enterprise Development (ED) and Social Economic Development (SED) 21
4.2. Continental 23
4.3. International 26
5. INFLUENCING FACTORS 27
5.1. Economic Environment 27
5.2. Socio-Economic Environment 29
5.3. Rising Operational Costs 30
5.4. Technology, Research & Development (R&D) and Innovation 30
5.5. Labour Resources 33
5.6. Cyclicality 35
5.7. Environmental Concerns 36
5.8. Over-regulation 36
5.9. Fraud 37
6. COMPETITION 38
6.1. Barriers to Entry 39
7. SWOT ANALYSIS 40
8. OUTLOOK 41
9. INDUSTRY ASSOCIATIONS 41
10. REFERENCES 43
10.1. Publications 43
10.2. Websites 44
COMPANY PROFILES 46
1 LIFE INSURANCE (RF) LTD 46
ABSA LIFE LTD 49
AFRICAN UNITY LIFE LTD 51
AIG LIFE SOUTH AFRICA LTD 53
ALEXANDER FORBES LTD 55
ALLAN GRAY LIFE LTD 59
ASSUPOL LIFE LTD 61
AVBOB MUTUAL ASSURANCE SOCIETY 63
BIDVEST LIFE LTD 66
BOPHELO LIFE INSURANCE LTD 68
BRIGHTROCK LIFE LTD 70
CLIENTELE LIFE ASSURANCE COMPANY LTD 72
COMMUNITY LIFE INSURANCE COMPANY LTD 74
CORONATION LIFE ASSURANCE COMPANY LTD 75
DISCOVERY LIFE LTD 77
FEDGROUP LIFE LTD 79
GENERAL REINSURANCE AFRICA LTD 81
GIC RE SOUTH AFRICA LTD 84
GUARDRISK LIFE LTD 86
HANNOVER REINSURANCE GROUP AFRICA (PTY) LTD 88
HOLLARD LIFE ASSURANCE COMPANY LTD 90
INVESTMENT SOLUTIONS LTD 93
LAND BANK LIFE INSURANCE COMPANY SOC LTD 96
LIBERTY HOLDINGS LTD 98
LION OF AFRICA LIFE ASSURANCE COMPANY LTD 102
MMI GROUP LTD 105
MUNICH REINSURANCE COMPANY OF AFRICA LTD 108
NEDGROUP STRUCTURED LIFE LTD 110
OLD MUTUAL LIFE ASSURANCE COMPANY (SOUTH AFRICA) LTD 112
OUTSURANCE LIFE INSURANCE COMPANY LTD 116
PROFESSIONAL PROVIDENT SOCIETY INSURANCE COMPANY LTD 118
PRUDENTIAL PORTFOLIO MANAGERS (SOUTH AFRICA) LIFE LTD 121
PSG KONSULT LTD 123
RAND MUTUAL ASSURANCE COMPANY LTD (THE) 127
REGENT LIFE ASSURANCE COMPANY LTD 131
RGA REINSURANCE COMPANY OF SOUTH AFRICA LTD 134
SANLAM LIFE INSURANCE LTD 137
SCOR AFRICA LTD 143
STANDARD GENERAL INSURANCE COMPANY LTD (THE) 145
STRATEGIC INVESTMENT SERVICE LIFE COMPANY LTD 147
SWISS RE LIFE AND HEALTH AFRICA LTD 148
SYGNIA LIFE LTD 150
UNION LIFE LTD 152