The 2024 financial results of insurers which were covered in a survey by the global professional firm KPMG indicate that the industry was not only able to sustain but also build on the robust financial results reported in 2023, carrying forward the momentum and gains established from the previous year.
The 2025 KPMG South Africa Insurance Survey covered the financial results of 85% of South Africa’s insurers—across life insurers, non-life insurers, and reinsurers. This year’s survey covered the financial results of 28 non-life insurers, sixteen life insurers and four reinsurers.
The theme for this year’s survey is “Up in the air”, reflecting the multitude of priorities and external and internal forces that insurers are having to juggle, and because the insurance industry is all about operating in a world of change and uncertainty whilst still managing the bottom line.
Mr Mark Danckwerts, partner and Africa insurance lead at KPMG South Africa, said, “The industry continues to benefit from the strategic measures implemented in recent years, such as rate increases, cost containment measures, process efficiencies and the application of stricter underwriting principles, to name a few. The approach taken by the industry to achieve these results underscores their commitment to long-term resilience and strategic foresight, ensuring that long-term stability is not compromised in the interest of short-term gains.”
Life insurers
According to the 2025 KPMG South Africa Insurance Survey report, life insurers reported positive results for 2024 compared to prior years, with key trends impacting this growth including resilient premium growth, economic pressures, claims normalisation, strong investment returns and digital transformation and distribution.
Premium growth during the year was moderate, with most life insurers reporting indexation of existing policies to inflation. The interest rate environment and elevated inflation impacted policy lapse rates and consumer affordability.
Claims ratios normalised in 2023, continuing into 2024, with reinsurance costs stabilising and improving underwriting margins.
Equity markets performed well in 2024, particularly in the second half, with positive fair value gains experienced on investment portfolios and improved embedded value (EV) growth across most insurers.
The life insurance sector saw continued investments into digital transformation and distribution, such as AI-driven underwriting, automated claims processing and digital sales platforms for brokers and direct-to-consumer channels. Bancassurance and partnership models also gained traction, especially in rural and township markets.
The top five insurers reported solid 2024 results, driven by strong investment growth, strategic expansion, and efficiency gains and reflecting solid balance sheets anchored by innovation, cost discipline and market diversification. The five largest life insurance groups in South Africa are Sanlam, Old Mutual, Liberty, Discovery and Momentum Metropolitan.
“Life insurers have risen to the occasion and showcased the stability of their business model over the last few years. The results that they have reported have underlined the strong foundations on which they are operating,” said Mr Danckwerts.
Non-life insurance
The report also showed that 90% of the non-life insurance industry posted improved results for 2024, demonstrating the resilience of this market over the year, despite challenges experienced from economic headwinds.
Insurance revenue increased by 9.8%, from ZAR140.4bn ($8.1bn) in 2023 to ZAR154.2bn in 2024, more than the average inflation of 4.40%. This increase reflects a strong top-line performance considering the overarching economic environment, pressure on South African consumers’ disposable incomes and market competition.
Similarly, profit after tax increased from ZAR14.2bn in 2023 to ZAR17.7bn in 2024, representing an increase of 24.6%.
Investment performance was driven by favourable market dynamics, including improved investor sentiment following the establishment of the Government of National Unity (GNU) after elections last year, its positive influence on equity markets and the high-interest rate environment throughout 2024.
The underwriting result was driven by a favourable claims experience and healthy top-line growth, amidst fierce market competition.
While growth ambitions remain a priority for insurers, notable strides have also been made in portfolio management and risk selection strategies. In retrospect, the timing of these strategic executions appears to have been highly opportune, coinciding with a period of strong industry performance across key metrics.
The alignment of strategic focus and favourable market conditions positioned insurers well for sustained resilience and future growth.