The 15 July 2009 is a special day for life insurer, Assupol Life, as it celebrates its 95th year of existence. “On this day in 1914 a seed was planted that has grown – over the years – into a powerful tree,” says the group. Assupol Life uses the tree as a visual reminder of the growth of the company and a “symbol of strength and protection for the many lives assured and shelter provided under our branches.”
A successful life insurer must identify and provide solutions for a unique set of client needs. Assupol Life has had 95 years to perfect this art. “Our strength lies in one goal and in one mission,” says Assupol Life: to offer “financial peace of mind and security through affordable, diverse and adaptable financial solutions across selected markets.” The group’s tailored solutions include funeral cover, life insurance, investments & retirement solutions, employee benefits and Zimele (accessible products for low-income households). Motor and household cover is available through Kestrel Insurance Brokers, Assupol Life’s 100% owned subsidiary in the short-term insurance space.
Growing from strength to strength
How big is the company? To get a better idea we turned to Assupol Life’s financial results for the 2007/2008 year. Over the latest reported 12-months the group’s assets grew by 5.9% to R2.146bn while embedded value, a measure used to ‘rate’ life insurance companies, increased by 33.16%. Although net group insurance premiums climbed slightly over the period, Assupol Life reported declines in group operating profit and total group income. The group clearly suffered on the back of the US-led global financial crisis. “The operating profit was affected by the weaker returns on financial assets, compared to the previous year,” said chief executive Gert Wessels. Overall the group was happy with its performance. We are “proud of a decent set of results, despite the challenging environment in which they were produced,” said Wessels.
A life insurance company doesn’t spring up overnight; a forest is not grown in a season. Continuing with the tree analogy introduced in the opening paragraph, Assupol Life compares its growth to that of a flourishing forest. “The seeds sown in 1914 by a handful of people have flourished into a forest – with each new policy a sapling that will eventually grow into financial liberation for the policy holder!” They compare the group (and policyholders’) growth to the rings in a tree. These rings stretch out during the good years as management pursues aggressive growth strategies, but contract as management’s focus shifts to controlling expenses in trying times.
Commenting on their latest results, Assupol Life notes: “With a proud tradition of superior client value, we have laid down firm roots in the South African market. These roots will remain steadfast in an environment where it has become increasingly important to provide for the impact of life-changing events. We will continue growing our forest of wealth and empowering our policy holders to gain financial freedom.”
Greening initiative to celebrate
How will Assupol Life celebrate their 95th year? Instead of throwing a lavish party the group announced plans to plant 95 trees throughout the country. “Our company has gone through significant changes in the past 95 years – it has grown and branched out into many new directions – yet we are still rooted in our original promise of service excellence.”
As world-renowned physicist and inventor, Albert Einstein once said: “It is high time the ideal of success should be replaced with the ideal of service.” Assupol Life has done just that – its success is deeply rooted in service excellence. Einstein also had something to say about the trees. “There are people who have seen thousands of trees, but never a forest,” he said. Over 95-years Assupol Life has gained the experience to see both – the trees that represent the various industry stakeholders (especially the consumer) – and the forest that represents the entire operating environment.
“Celebrating our 95th birthday in 2009 proves that we are a truly seasoned company,” said Wessels. FAnews Online agrees and would like to take this opportunity to wish Assupol Life on 95 years of service excellence in the insurance industry.
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