Sasria

Executive Speech
Presentation of 2015 Integrated Report

Mcebisi Hubert Jonas

Deputy Minister of Finance

Honoured Guests,

It is my pleasure to be with you here today to mark the presentation of Sasria’s

fourth annual Integrated Report, which outlines the entity’s performance for the year
ending 31 March 2015. Despite operating under challenging circumstances, it has
achieved financial results that are well above expectation and has also met five of
seven key performance indicators.

More specifically, it outperformed the industry average for premium growth by 1.4%
and, although its net profit before tax decreased by 11.6%, this should be seen
against the backdrop of a 54% increase in claims and a 25% increase in the severity
of claims over the previous period.

Sasria’s performance therefore needs to be seen within both a business and a socio-
economic context. Not only does it have to demonstrate financial prudence,
profitability and sustainability, it also has to provide cover for special risks that no
other insurer is able or willing to provide. As a good corporate citizen, it has the
further responsibility of contributing to the stability of the economy and the
transformation of South African society as a whole, a subject it covers extensively in
this report.

Sasria performs a vital function by providing insurance for damages that may be
suffered during civil protests, political unrest, labour actions or acts of terrorism, but
it is also a well-run, profitable and sustainable business. By successfully meeting its
demanding mandate, it contributes in a very meaningful way to the well-being of the
South African people and the fulfilment of the National Development Plan.

Like other state-owned entities, it plays a key role in promoting social and economic
development through investments that contribute substantially to gross capital
formulation. Sasria takes its stewardship of public funds and public trust very
seriously, which is evident from its operational performance and financial results.
Adhering to the highest standards of fiscal prudence allows it to be completely self-
funding and also to generate funds for the National Treasury through its payment of
dividends to government as sole shareholder.

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However, as the Minister mentions in his message at the beginning of the report,
Sasria’s impact reaches way beyond the economic sphere. By covering loss in the
event of special risks, it reaches South Africa’s people on a very immediate and
human level. It not only helps them to restore the assets they have lost under
difficult or even traumatic circumstances but, in many cases, also secures their
businesses and their livelihoods.

On a macroeconomic level, it helps to maintain investor confidence by providing

assurance that claims for damages suffered during special risk events will be
covered. The importance of this cannot be underestimated as we live in uncertain
times. As we know, the number of civil protests in South Africa has increased
dramatically over the past five years, as have strikes and other labour actions. More
recently, the FeesMustFall campaign that swept through campuses around the
country resulted in significant property damage, which Sasria is still in the process of
assessing.

All of this demonstrates that the company fulfils a unique role in South African
society and is there for the country’s people in their hour of greatest need.

I would therefore like to take this opportunity to extend my thanks to the Board,
management and staff of Sasria for their hard work and commitment in delivering
on both their mandate and their business strategy.

As the American writer, Ralph Waldo Emerson, said: “The purpose of life is … to be
useful, to be honorable, to be compassionate …”. The people at Sasria are all of
these things, and for this I offer my deepest thanks.

End.

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