Sasria Limited Media Feature

Sasria Releases 2010 Annual Report

South Africas leading special risks insurer reports positive results in the wake of a financial year characterised by difficult trading conditions Johannesburg [Insert Date] For immediate release Sasria, South Africas leading special risks insurer, has released its annual report for the 2010 financial year. Despite difficult trading conditions during the reporting period, mainly resulting from of the global financial crisis and the knock-on effect it had on key economic indicators, the company is pleased to announce the kind of positive results its shareholders have come to expect. Profit before tax increased by 44.8% for the year ending 31 March, driven largely by organic growth in net insurance premiums, as well as by growth in investment income. Total equity also increased by 19.0% to R3,202 billion, and total assets increased by 15% to R3,691 million. In contrast, as the company kept a tight rein on all aspects of its operations, liabilities increased by only 1.2% to R489,8 million. Further, dividend income increased by 62.7% to R7,057 billion and, in line with a decision taken at the end of the 2009 financial year, Sasria now invests 20.6% of its assets through black economic empowerment investment managers. While both the global and local economies are slowly recovering from the impact of events in 2008 and 2009, Sasria Chairperson Matamela Cyril Ramaphosa cautions that the return to normality is likely to be a slow process, and one which will inevitably be affected by international events such as the credit crunch in the European Union and the second phase of the so-called quantitative easing planned by the US Federal Reserve. In the wake of what is now being dubbed The Great Recession, Ramaphosa says there is, however, a positive side to the situation for South Africa.
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Mature economies now face a multi-year downshift in growth, he says. This will see key emerging economies, especially those of the Brics (Brazil, Russia, India China and South Africa) taking up a more important place in the international arena, and this presents many opportunities for South Africa, even in the face of a strong dollar. Acting Managing Executive, Karen Pepler, says that Sasrias solid track record will continue to hold it in good stead through the uncertainties that lie ahead. Since its establishment 31 years ago, Sasria has been at the forefront of social and economic change in South Africa, she says, insuring organisations, businesses and individuals alike against the special risks that characterise not only a country in transition, but a country that has become part of the global community. Sasrias activities now focus not only on strikes and labour-related unrest, but also on civil unrest and the possibility of terrorist attacks, especially during such high-profile events as this years FIFA World Cup. Everyone, she says, needs to be prepared for eventualities like these. What is important to remember about extraordinary risks is that theyre very difficult to predict and, unlike the damage caused by everyday incidents such as a burst geyser or a burglary, the damage caused by special risk situations is usually significant. Sasria, she says, fulfils a vital role in the insurance industry, and will continue to protect the South African public with the unique cover it offers. The companys range of products includes Sasria Wrap, a new product launched in January 2010, which is aimed at corporate clients looking for higher coverage limits and full business interruption cover. Of course, many people and, indeed, some businesses, dont feel theyre at risk of being affected by civil unrest, labour action or terrorism, says Pepler, but in todays world, everyone is at risk. And having to repair damaged infrastructure or vehicles, replace lost stock or absorb the effects of lost revenue can cripple a business. In the same way, having to buy a new car to replace one that has been damaged in a riot can seriously strain an already-overstretched family budget.

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So its important for everyone to realise that damage resulting from extraordinary circumstances is a possibility, and to allow for this when taking out short-term and property insurance. Sasria is South Africas only special risks insurer and, as such, covers damage caused by all forms of public disorder, as well as losses in respect of mortgage loans and those associated with acts of terrorism. The state-owned insurer offers short-term insurance solutions for both individuals and businesses, and has the underwriting capability to meet the large claims that usually result under unusual circumstances. Sasria doesnt market its products directly to the public, says Papler, but all insurance providers and brokers can add special risks cover underwritten by Sasria to a new or existing policy. Cover like this is no longer a nice-to-have, its essential. For more information about Sasria, visit www.sasria.co.za.

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