2013-02-21 09:26:12 - Recently published research from Business Monitor International, "South Africa Insurance Report Q1 2013", is now available at Fast Market Research

Key Insights And Key Risks

This South Africa Insurance Report considers the prospects for both life and non-life insurers in the country. The latest results published by South Africa's life companies relate to H112 and Q312 and highlight their strengths and competitive advantages in a global context. Most have benefited from at least some of the following factors: rising demand for long-term savings products from 'retail mass' customers; development of new products; realisation of benefits of long-standing programs to boost the profitability of the products that are sold, and synergies from combinations of businesses. Unlike their counterparts in other countries, they appear to have suffered relatively little from the volatility in global financial markets. In general, they are upbeat about the

prospects of (much) smaller new businesses in other countries throughout Sub-Saharan Africa (SSA).

Because of the peculiar history of South Africa, the life companies have enormous tolerance of emerging markets risk and particularly political risk. Compared with their counterparts in broadly comparable countries such as Taiwan (especially) or Israel, they have generally had to work with much smaller pools of organised savings. To a greater extent than their Taiwanese or Israeli peers, they have developed very substantial businesses in developed countries. In short, the combination of absolute size, financial strength, world-class corporate governance and orientation towards emerging and embryonic markets has served South African companies very well.


Full Report Details at
- www.fastmr.com/prod/536610_south_africa_insurance_report_q1_2013 ..


Longer-term trends in the non-life segment are less inspiring. The leading players' comments in relation to H112 suggest that premiums will grow at single-digit rates over the year as a whole. We see no reason for non-life penetration to stop falling over the medium term. The non-life companies are working assiduously to control claims costs, boost productivity, develop new products, exploit economies of scale and, if possible, grow by acquisition. Like their counterparts in the life segment, they are looking at opportunities outside South Africa. However, for the medium term, they will likely continue to face downwards pressures on prices.

Overall, the strengths of both segments mean we are optimistic about the medium- to long-term prospects of South Africa's dynamic insurance sector. The Financial Services Board (FSB)'s solvency assessment and management (SAM) regime may require some players to strengthen their capital bases over the coming years. However, it is very difficult to imagine the problems will be insurmountable. We remain of the view that more high-profile deals, following the merger that produced MMI Holdings, could well occur.

Over the last quarter, BMI has made the following changes:

* The analysis incorporates BMI's latest forecasts for South Africa's economy, including details in relation to auto sales and trends in the healthcare sector.
* The analysis incorporates the latest comments on developments of leading local insurers.

Report Table of Contents:

BMI Industry View
- Table: Total Premiums, 2010-2017
SWOT
- Insurance
- Political
- Economic
- Business Environment
Regional Overview
- MEA Life Sector Overview
- Table: Middle East And North Africa Life Premiums, 2010-2017 (US$mn)
- MEA Non-Life Sector Overview
- Table: Middle East And North Africa's Non-Life Premiums, 2010-2017 (US$mn)
Industry Forecast
- Life
- Table: Total Life Premiums, 2010-2017
- Non-Life
- Table: South Africa's Non-Life Segment, 2010-2017
Market Overview
- Life Sector Update
- Non-Life Sector Update
Industry Trends And Developments
- Life Growth Drivers And Risk Management Projections
- Population
- Table: Insurance Key Drivers, Demographics 2010-2017
- Non-Life Growth Drivers And Risk Management Projections
- Macroeconomic Outlook
- Table: South Africa - Economic Activity, 2011-2016
- Political Stability Outlook
- Table: Middle East And Africa Defence & Security Ratings
- Healthcare
- Epidemiology
- Table: Insurance Key Drivers, Disease Adjusted Life Years 2010-2017
- Motor
Industry Risk Reward Ratings
- Table: South Africa's Insurance Risk/Reward Ratings
- Table: Middle East And Africa Insurance Risk/Reward Ratings
Competitive Landscape
- Competitive Landscape
Company Profile
- AIG
- Allianz
- Hollard
- Liberty Holdings
- MMI Holdings
- Old Mutual Group
- Sanlam Group
- Zurich South Africa
Demographic Forecast
- South Africa Demographic Data
- Table: South Africa's Population By Age Group, 1990-2020 ('000)
- Table: South Africa's Population By Age Group, 1990-2020 (% of total)
- Table: South Africa's Key Population Ratios, 1990-2020
- Table: South Africa's Rural And Urban Population, 1990-2020
Methodology
- BMI Insurance Methodology
- Insurance Risk/Reward Ratings
- Table: Insurance Risk/Reward Ratings Indicators And Rationale
- Weighting
- Table: Weighting Of Indicators

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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

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