South Africa’s life insurance sector recorded a broadly positive performance in 2024, consolidating the recovery that began in the previous year and underscoring the sector’s ability to adapt to changing economic and demographic conditions.
KPMG’s Insurance Industry Survey 2025 shows that all major life insurers reported improved results, supported by moderate premium growth, stronger investment income, and continued efficiency gains.
Premium income expanded moderately in 2024, with most life insurers reporting growth roughly in line with inflation. The increase reflected indexation of existing policies rather than large volumes of new business, because high interest rates and elevated living costs weighed on consumer affordability.
Despite the tight household budget environment, the industry demonstrated resilience through stable lapse ratios and targeted product adjustments, including simplified risk products and flexible premium options aimed at retaining policyholders. KPMG notes that the emphasis on persistency management and cross-selling within existing client bases helped to offset weaker new-business inflows.
Following the post-pandemic spike in mortality and disability claims, claims ratios normalised through 2023 and remained stable in 2024. Reinsurance costs also stabilised as loss experience improved, and reinsurers softened their stance on pricing after several hard-market years.
The result was a marked improvement in underwriting margins and a return to more predictable claims experience – a shift that has allowed life offices to rebuild surplus and enhance solvency positions. The industry’s aggregate solvency capital requirement coverage remained comfortably above the regulatory minimum, reflecting strong capitalisation and disciplined balance-sheet management.
Investment income drives bottom-line growth
A key contributor to profitability was the rebound in investment performance. Equity markets strengthened during the second half of 2024, generating positive fair-value gains across portfolios. The JSE All Share Index gained 6.3 % on average, while interest income benefited from the elevated rate environment that persisted for most of the year.
Consequently, insurers reported solid embedded value (EV) growth, reversing the subdued results of the prior period. KPMG attributes this to improved market returns, stronger persistency assumptions, and cost-efficiency initiatives that enhanced operating margins.
Digital transformation reshaping distribution and efficiency
Digital modernisation continued at pace. Life insurers accelerated investments in AI-driven underwriting, automated claims processing, and data-led distribution models aimed at both brokers and direct-to-consumer channels.
Mark Danckwerts, partner and Africa insurance lead at KPMG South Africa, notes that bancassurance and partnership models gained traction, extending insurers’ reach into rural and township markets where traditional agency models have struggled to achieve scale. These initiatives are improving accessibility and lowering acquisition costs, while analytics are enabling better pricing and customer engagement.
Operational efficiency also advanced through automation and cloud-based policy administration, allowing insurers to contain expenses even as compliance and technology costs rose.
Performance of the largest life insurers
The survey highlights strong performances from the top five life insurers, which together continue to account for more than 85% of total industry assets and premium income.
- Sanlam retained its position as the largest life insurer, with insurance revenue of R61.4 billion, up 8.4% year-on-year, supported by robust investment performance and growth in individual life business. Its profit after tax (PAT) rose 27% to R8.6bn, while EV increased 9%.
- Old Mutual reported a 6.3% increase in insurance revenue to R49.8bn and profit of R5.4bn, buoyed by improved persistency and lower mortality claims.
- Liberty saw a 12% increase in PAT, underpinned by higher investment income and disciplined cost control.
- Momentum Metropolitan Life achieved 8.9% growth in premiums and a 10% rise in EV, driven by strong risk and annuity business results.
- Discovery Life reported double-digit profit growth, reflecting expanding protection and investment portfolios and continued gains from its shared-value insurance model.
KPMG observes that although the top-tier insurers remain dominant, competition is intensifying at the margins. Mid-tier and niche players are using digital distribution, health-linked products, and hybrid protection-investment offerings to capture underserved segments.
Danckwerts notes that the solid balance sheets of the leading insurers – “anchored by innovation, cost discipline and market diversification” – have positioned them to sustain growth and absorb volatility even amid economic uncertainty.
Outlook: sustainable growth built on strong foundations
“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,” Danckwerts says.
Looking ahead, moderate premium growth is expected to continue, supported by inflation indexation, digital sales expansion, and recovering investment yields. However, KPMG cautions that economic pressures, rising medical costs, and the pace of savings accumulation remain key sensitivities.
With EV growth restored and solvency ratios comfortably above requirements, the sector entered 2025 on a firm footing – leveraging technology, data, and strategic partnerships to sustain profitability in an environment where consumer affordability remains under strain.
