Rédaction Africa Links 24 with Neesa Moodley
Published on 2024-03-27 19:01:07
Old Mutual made headlines with the revelation that they paid out R30 million a day in claims in 2023. This news came just a day after Asisa announced that life assurers collectively paid out a staggering R599 billion over the past year. Momentum Metropolitan also confirmed their significant payout of R103 billion for the 2023 financial year.
Iain Williamson, the chief executive of Old Mutual, shared that the company paid out over R14 billion in claims for the financial year ending in December 2023. He also highlighted that 88% of funeral claims were settled within a four-hour turnaround time. When questioned about policy lapses, Williamson acknowledged the prevailing financial pressure faced by consumers, which resulted in some policies lapsing due to premium contributions being unmet. However, he noted a slight improvement in the trend towards the end of 2023, with potential further progress anticipated in the coming months.
Looking ahead, Williamson expressed optimism about the future, citing green shoots indicating a recovery in the last quarter of 2023. He attributed this positive outlook to potential improvements in the rates cycle, expected to materialize around the middle of the year. Jeanette Marais, the group chief executive of Momentum Metropolitan, echoed similar sentiments, emphasizing the need for innovation and growth in light of South Africa’s economic challenges.
Despite the economic difficulties, both companies reported positive financial indicators for 2023. Old Mutual saw a 37% growth in the value of new business, with gross flows and gross written premiums increasing by 14%. Shareholders can expect a final dividend of 49 cents per share, demonstrating a dividend cover of 1.5 times. Total dividends declared in 2023 amounted to 81 cents per share, marking a 7% increase from the previous year.
In addition to their financial achievements, Old Mutual shared their progress in launching Old Mutual Bank. With the core bank infrastructure mostly completed within budget, the company is awaiting regulatory approval for a conditional banking license. Once received, they will integrate the bank into South Africa’s Payment Association and conduct thorough testing before the public launch.
Overall, the financial services sector in South Africa showed resilience amidst challenging economic conditions in 2023. Companies like Old Mutual and Momentum Metropolitan demonstrated their commitment to supporting clients through innovative solutions and services. As the industry navigates ongoing uncertainties, there remains a cautious optimism for continued growth and development in the future.
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