In a previous article we reflected on the need for more publicity regarding the positive contribution of the financial services sector. The following information, published by ASISA, should be reassuring to both the government and the public.
Clean bill of health for life industry
The life office statistics for the first half of 2013 were compiled by True South Actuaries and Consultants and circulated to members together with their report.
The statistics show that assets held by life insurers grew to R1.8 trillion in the first half of this year, representing a 5% increase from the R1.7 trillion held at the end of 2012. The industry’s assets continue to exceed liabilities by more than triple the legal reserve buffer required by the FSB, and when considered against the International Financial Reporting Standards (IFRS), the life industry’s assets exceed liabilities by more than four times.
In the first half of this year the life industry paid R155 billion in benefits to policyholders, beneficiaries, and pension fund members as a result of death and disability claims, maturity pay-outs and pension, annuity and other payments. This is 27% more than was paid out in the second half of last year when total benefit payments amounted to R121 billion.
Record net inflows for local CIS industry
The local Collective Investment Schemes (CIS) industry reported assets under management of R1.43 trillion at the end of September this year, following another quarter of exceptional net inflows.
The industry attracted net inflows of R57 billion during the third quarter of this year. These are the second highest net inflows ever after the record breaking R63 billion achieved in the third quarter of last year. This brings to R194 billion the net inflows for the 12 months ended September 2013. The CIS industry now offers investors a choice of 1025 funds.
Locally registered foreign funds held assets under management of R196 billion at the end of September 2013, compared to R180 billion at the end of June 2013.
We trust that the media will report on this to provide the investing public with the necessary peace of mind that their money is safe when placed with the established product houses in the country.
There can be no doubt that the government realises who their biggest allies are in the battle to increase per capita savings. This, in turn, should provide product providers with some muscle when engaging on matters concerning the industry.