Johannesburg – Friday, 31 October 2025 : Sasria SOC Limited (Sasria), South Africa’s leading special risk insurer, today announced a robust 34.1% increase in profit for the year, reaching R4.5 billion for the financial year ending 31 March 2025. The strong performance has significantly strengthened the state-owned insurer’s capital base, with its own funds increasing to R18.6 billion – a remarkable step towards its 2029 target of R30 billion in capital reserves.

The results, tabled in Parliament, highlight a period of substantial recovery and strategic realignment for Sasria, driven by robust insurance service results, favourable investment income, and disciplined cost management.

Financial Highlights:

• Total assets increased to R20.9 billion (2024: R16.5 billion), indicating an outstanding balance sheet growth of 27.1%.
• Insurance revenue showed strong results, reaching R5.8 billion, a healthy 9.7% increase from the previous year’s R5.3 billion.
• Profit for the year reached an impressive R4.5 billion, demonstrating strong operational resilience and strategic execution, up from R3.3 billion in 2024.
• Investment income delivered strong returns of R1.3 billion (2024: R1.0 billion), benefiting from favourable interest rate conditions and strategic asset allocation.
• Accumulated losses decreased significantly from R7.9 billion in 2024 to R3.4 billion, thereby greatly enhancing Sasria’s equity position to R18.6 billion.
• Reinsurance Management: Net reinsurance expenses dropped significantly to R592.2 million from R1.3 billion, a combination of lower reinsurance placement due to the hardened reinsurance market and a revised quota share arrangement with a lower ceding rate of 20% compared to 42.4% previously.
• Capital Strength: Assets under management grew to R16.7 billion (2024: R13.3 billion), supporting the company’s strategic aim to reach R30 billion in capital reserves by 2030.

Chief Financial Officer Dirk Kunz emphasised the importance of these results: “Our strong financial performance positions Sasria on the right path towards reaching our target of R30 billion in capital reserves by 2030. The significant increase in our equity to R18.6 billion from R14.1 billion shows our commitment to building financial resilience for future catastrophic events.

“Although the underlying drivers of the various perils we cover – including socio-economic conditions, unemployment, and youth unemployment – were not significantly different from previous years, we were encouraged by low level of claims expense during the period, which contributed to an improvement in net insurance service profitability,” Kunz said.

Strengthened Operations and Favourable Conditions Drive Performance 

Sasria’s net insurance result rose by 48.9% to R2.9 billion, up from R2.0 billion in the previous year. This increase was mainly due to a notable 55.4% fall in net reinsurance expenses, which declined to R592.2 million from R1.3 billion. The decrease is linked to a new, more favourable quota share reinsurance arrangement.

While gross claims incurred increased to R666.3 million from R481.4 million in the previous year, the level remained manageable, contributing to a positive underwriting result. Furthermore, net investment income grew by 26% to R1.3 billion, as the company capitalised on high cash rates.

CEO Mpumi Tyikwe highlighted the strategic implications and explained that the solid financial footing is critical for the insurer’s future mandate: “This year marked our entry into a new strategic cycle toward Vision 2029. Beyond maximising capital reserves, we’re introducing new profitable products and expanding our mandate to address climate-related catastrophes and emerging risks. Our engagement with government on these critical matters positions us as a forward-thinking institution ready for South Africa’s evolving risk landscape”.

“Despite the rise in protests in recent years, these have not led to higher claim numbers, partly due to the national campaign urging South Africans not to “score own goals” by damaging their own infrastructure during protests,” noted Tyikwe.

“We expect to reach our R30 billion target within this period, putting us in a strong position to withstand future shocks, including major events like the July 2021 unrest. That event revealed our vulnerabilities and highlighted the vital role of specialised risk insurance in maintaining national stability. While this year showed a positive financial performance, we still need another three years to recover the R24 billion loss incurred in the 2021/22 financial year amid a significantly higher risk environment,” further said Tyikwe.

A Resilient Institution Dedicated to Public Value 

Finance Minister Enoch Godongwana, who presented the integrated report in Parliament, highlighted Sasria’s broader importance: “This report provides evidence of an organisation firmly on the path to transformation, safeguarding assets and contributing significantly to socio-economic development. By investing in data intelligence and strategic partnerships, Sasria positions itself as a resilient institution aligned with emerging needs and committed to public value.”

Governance Excellence and Regulatory Compliance 

Dr. Nolwandle Mgoqi-Mbalo, Chairperson of Sasria’s board, commented on the strategic execution: “During the year, the Board oversaw the launch of Sasria’s 2024-2029 Strategic Plan, which emphasises innovation, stakeholder engagement, and advanced data analytics to improve forecasting. We have consolidated the achievements of the past five years by recovering our financial position and establishing robust governance practices,” she said.

“We also supported and monitored Sasria’s progress towards an expanded mandate covering systemic risks such as climate-related events and cyber threats, in consultation with government and industry stakeholders to better understand these opportunities.”

Sasria achieved high governance standards, earning an unqualified audit opinion and maintaining full compliance with the PFMA. The company’s Net Promoter Score reached 75, demonstrating strong stakeholder satisfaction, while claims-processing efficiency achieved a 97% rate of fast-track claims settled within 25 working days. These operational metrics demonstrate Sasria’s commitment to service excellence and adherence to regulatory best practices, thereby strengthening its position as a trusted partner for South African businesses and individuals seeking special risk cover.

During 2024/25, Sasria also completed the first year of its “Restore and Defend” strategic phase, which prioritises rebuilding its balance sheet while enhancing its underwriting and risk intelligence capabilities to prepare for future challenges. Early milestones included redesigning reinsurance programmes and strengthening data systems, steps that position Sasria to progress into the subsequent phases of its roadmap – “Capitalise & Optimise” and, ultimately, “Expand” – in the coming years.

Sasria’s progress has been complemented by a deepening of its socio-economic commitments. The company is strengthening its corporate social investment (CSI) efforts to address youth unemployment, educational challenges, and community resilience. It also integrates Environmental, Social and Governance (ESG) principles throughout its operations, from responsible investing to procurement targets, playing a catalytic role in transforming the financial services sector. For example, Sasria’s revised investment and procurement policies favour black-owned asset managers and service providers, aligning with international responsible-investment frameworks.

Mgoqi-Mbalo concluded: “From a transformation standpoint, the Board takes pride in Sasria’s dedication to enhancing its contribution to national development. This includes significant progress in supply chain transformation, investment in education through bursaries and partnerships, and the ongoing implementation of Sasria’s ESG and sustainability framework. We also have to acknowledge the contribution of our esteemed Board Member, Mr Enos Ngutshane, who sadly passed away last November.”

Ends…

For more information and media queries, contact: Andiswa Madolo

Email:  andiswam@sasria.co.za

Phone: +27 11 214 0800

Mobile: +27 72 243 0978