However, the global credit rating agency expecst them to remain resilient to geopolitical, economic, and climate-related uncertainty.
S&P said, "We project that premium growth for South African life insurers will slow to between 3.5% and 4.5% over the next two years, from 8.7% in 2025, due to elevated living costs and constrained disposable income.
"In the non-life sector, we project premium growth of approximately 5% over the next two years, down from 6% in 2025, but in line with South Africa’s nominal GDP growth. This reflects continued repricing due to claims inflation and sustained demand."
S&P credit analyst Ms Sylvia Mhlanga said, "We expect profitability to remain resilient and capital strength to endure in both the life and non-life sectors, despite lower premium growth.
"Prudent risk management and robust regulatory capital frameworks should support the sectors' stability over the next two years."
Key influences on operating performance remain modest GDP growth, elevated unemployment rates, and exposure to capital market volatility, currency fluctuations, and global interest rate movements due to geopolitical tensions. Life insurers are particularly sensitive to investment market conditions and policyholder dynamics, while non-life insurers face ongoing pressure from claims inflation and climate-related events.