Latest news with #R4.4
IOL News
a day ago
- Business
- IOL News
Old Mutual pays R14. 7 billion in claims
Old Mutual reports a significant increase in life insurance claims paid in 2024, totalling R14.7 billion. The data reveals insights into demographic trends, types of claims, and the insurer's commitment to honouring valid claims. Image: File photo. Financial services provider Old Mutual has reported a total of R14.7 billion in risk-related claims paid during 2024, representing a 4.3% increase compared to the R14.1 billion paid in 2023. This is according to its latest annual claims statistics report. Approximately half of the total payout, amounting to R7.3 billion, was attributed to claims on underwritten risk policies. A further R4.4 billion was paid through corporate group risk policies, while R2.9 billion was paid out on non-underwritten risk policies. Old Mutual says it paid out 98% of death claims and 95% of all underwritten claims, which include benefits for death, disability, and severe illness. Old Mutual's executive head of protection, Kavir Ramjee, believes these figures help dispel the notion that insurers are reluctant to settle claims. 'We view every claim as a promise kept, a reflection of our deep commitment to our customers. In 2024, we honoured this commitment by paying out about R29 million every working day on average in underwritten policies and thereby ensuring financial support when it matters most,' he says. A breakdown of benefits by product line shows that R6.2 billion was paid in death benefits, R297 million in disability benefits (inclusive of income and lump-sum payments), and R888 million in severe illness cover. Non-underwritten cover, largely consisting of funeral policies, accounted for R2.9 billion, while R4.4 billion was allocated to corporate group benefits. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Demographic data from the report reveals that 62% of claims are related to individuals aged 60 and above, 30% to those between 40 and 59 years, and 8% to claimants under the age of 40. The gender split showed that 58% of claims were for men, compared to 42% for women. The average claim age was 61 for men and 59 for women. 'While it is true that younger individuals are statistically less likely to experience a risk event, the notion that they are invincible is simply not supported by our claims data. The ASISA Gap Study (2022) shows that people under 40 are significantly underinsured, and our own statistics highlight why this is concerning. For instance, one of our youngest breast cancer claimants was just 31 years old. It's a stark reminder that life-altering events can happen at any age, and early financial protection is crucial,' says Ramjee. Old Mutual's data further indicates that non-communicable diseases continue to dominate claims related to illness and disability. In 2024, 73% of all severe illness claims were linked to cancer, heart attacks, strokes, and coronary artery bypass procedures. Breast cancer and prostate cancer were the most common conditions among women and men, respectively. Two-thirds (66%) of breast cancer claims involved women aged between 40 and 60, while 46% of prostate cancer claims came from men in their 60s. 'Most of our severe illness claims are linked to non-communicable diseases like cancer, heart disease, and stroke. Non-communicable diseases typically have prolonged durations and arise from a combination of genetic, physiological, environmental, and behavioural factors. While we can't change our genetic risk, lifestyle and environmental factors play a huge role, and that's where early screening and healthier habits can make all the difference,' Ramjee says. For disability lump-sum claims, musculoskeletal disorders (21%), central nervous system disorders (18%), and cancer (15%) remained the leading causes. Musculoskeletal issues also accounted for 51% of disability income claims. Reflecting on the broader significance of these figures, Ramjee noted the emotional and social role that insurance plays during life's most difficult moments. 'These policies, funeral, life, and disability policies, etc, are more than just financial products; they represent a promise of dignity, protection, and peace of mind for loved ones when life takes an unexpected turn. Therefore, our claims statistics are not just numbers; they are a reflection of that promise being honoured,' he says. PERSONAL FINANCE
The Citizen
01-07-2025
- Business
- The Citizen
Here's how much prisoners earn in Correctional Services' bakeries
Correctional Services bakeries now cover over 60% of prisoners' annual bread requirements across the country. The Department of Correctional Services' (DCS) bakeries are proving to be a valuable cost-cutting programme. DCS officials gave a presentation to their portfolio committee on Tuesday, where they outlined the programmes' growing scope. Other items on the department's cost-cutting agenda include re-evaluating the use of consultants, with a presentation explaining why external resources have been so heavily relied upon. Prison labour DCS' first bakery was established in 1992 at the C-Max facility, now known as Kgosi Mampuru II. The programme has since grown to 11 correctional facilities, with a 12th recently approved for test baking operations from June. Five of the current 11 were established in the last 10 years, but new bakeries are planned for eight more facilities, including Nigel, Krugersdorp, Brandvlei, Upington and Overberg. Production is able to cover over 60% of the bread requirements for inmates nationally. Last year it saved R27.4 million in the cost of feeding prisoners. The bakeries combined produce an average of 426 000 loaves of bread every month and are on course for a record financial year. Prisoners paid for working in bakeries These 11 bakeries provide food to almost 45 other correctional facilities and juvenile detention centres in the provinces where they are located. Bakeries require roughly 190 prisoners to work across the 11 facilities per day and each inmate is compensated for their labour. 'Offender gratuity ranges from R2 per day to R9 per day depending on the level,' DCS' presentation stated. Inflated costs of food suppliers The prison-made products are baked with ingredients sourced through a supplier bidding process, which has come under scrutiny in recent months. A recent audit flagged five food supplier deals worth R4.4 million all signed during 2024 that came at inflated costs. The department has resolved to implement new 'fair and uniform' pricing negotiations to ensure the department is getting value for money. 'The essence of the matter is to ensure a quality product, but through the most efficient and cheapest means for the department; and that should be right through the government,' stated Minister Pieter Groenewald. R70 million budgeted for consultants The department has been trimming financial fat after the Auditor-General of South Africa highlighted exorbitant fees paid to consultants. In the 2023/24, DCS paid R13.6 million to 18 consultants for a combined 225 days and the department had almost R70 million more budgeted for consultants until 2026/27. DCS explained that consultants were needed to cover a skills shortage, capacity constraints and an inability for the department to handle 'project complexity'. A reduction strategy has since been implemented which involves enhancing the department's human capacity by improving the skills of staff. 'We must be absolutely sure that when we appoint a consultant, that it is necessary, that we don't have our own expertise,' said Groenewald. 'There are certain circumstances where you have no option, but we will look very carefully into that to see what money we can save,' he concluded. NOW READ: Over 80% of sentenced inmates enrolled in corrective programmes
IOL News
17-06-2025
- Business
- IOL News
Q&A: Why stablecoins are gaining popularity
Tether illustration. Stablecoins - a form of cryptocurrency backed by traditional assets - are gaining traction, with the US Senate set to vote Tuesday on a bill to regulate such digital tokens. Image: AFP Stablecoins - a form of cryptocurrency backed by traditional assets - are gaining traction, with the US Senate set to vote Tuesday on a bill to regulate such digital tokens. But as stablecoins move closer to the financial mainstream, experts warn that weak regulation could leave investors and the financial system vulnerable. What are stablecoins? Stablecoins play a key role in crypto markets, enabling users to trade digital assets without relying on traditional banks, instead using a decentralised register known as blockchain. Unlike volatile cryptocurrencies like bitcoin, stablecoins track the value of traditional assets - such as the US dollar or gold - enabling greater stability. Tether and USDC, for example, are pegged to the dollar, backed by reserves held by their issuing companies. They are useful internationally because they enable "fast, low-cost cross-border payments", said Dessislava Aubert, an analyst at crypto insights firm Kaiko. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ This is "especially valuable in emerging markets where access to hard currency and traditional banking services is often limited", Aubert added. Examples include Argentina, Nigeria and Turkey, The market value of stablecoins soared to $246 billion (R4.4 trillion) in May, up from $20bn in 2020, according to Deutsche Bank. And the total number of transactions in 20 24 surpassed those of Visa and Mastercard. USDC's issuer, Circle, made a splash this month when it was listed on the New York Stock Exchange. Why is the US regulating them? To ensure the stability of stablecoins, the US is pushing for issuers to hold sufficient low-risk, liquid assets - such as dollars and Treasury bills. This could also boost demand for US debt and the greenback. The proposed legislation would require major stablecoin issuers to undergo regular audits and make it tougher to launch new tokens. These safeguards became more urgent after the collapse of the Terra stablecoin in 2022, which showed how these tokens can "depeg", or lose the link to the asset they are meant to track. There's a risk that an organisation may not be trustworthy or could be hacked, making audits and checks vital, explained Murat Kantarcioglu, a computer science professor at Virginia Tech University in the United States. Another possibility is that a loss of trust in the stablecoin may ripple beyond the crypto world, hitting the assets that back these tokens. Does the bill go far enough? "The new rules could make it harder for start-ups to issue stablecoins, creating a risk that a few big companies - such as tech giants - could dominate the market," Aubert told AFP over email. According to the Wall Street Journal, Amazon and Walmart are considering issuing their own stablecoin, which their customers could use for purchases. Democrats opposing the bill say risks of speculation, money laundering and political conflicts of interest associated with stablecoins are not sufficiently addressed. Notably, President Donald Trump's family has helped launch a stablecoin called USD1, used by Emirati fund MGX. And even with new regulations, in the event of issuer bankruptcy, stablecoin losses "are not explicitly covered by government insurance programs", unlike "bank deposits, which are insured up to $250 000", Aubert pointed out. How do other countries regulate them? In Europe, regulation on cryptocurrencies (MiCA), effective since the end of December, provides a framework for issuing stablecoins. The UK, South Korea and Brazil are moving forward with regulations. China banned cryptocurrencies in 2021 and is instead developing its own central bank digital currency, the e-yuan. Russia is considering a stablecoin backed by the rouble or friendly currencies such as the yuan. AFP
The Citizen
10-06-2025
- Business
- The Citizen
Spar South Africa CEO resigns amid financial challenges to lead McDonald's
Spar South Africa CEO Max Oliva will assume his role as McDonald's South Africa CEO on 1 July 2025. Spar South Africa CEO Max Oliva has resigned from the group, just days after the retailer announced a decline in profits and a R4 billion loss. The retailer said Oliva resigned after 30 years at Spar on Tuesday. 'It has been an honour to serve Spar for the past three decades. While this was not an easy decision, I am confident that the business is in capable hands. Angelo has my full support, and I am excited to see how the team continues to build on the momentum we've created,' he said. Spar SA's next CEO The retailer said Spar Group chief executive officer, Angelo Swartz, will replace Oliva. 'To ensure continuity and maintain the strong momentum Spar South Africa is currently experiencing, Swartz will assume operational leadership of the Southern Africa region.' He has been with Spar for 16 years and was appointed Group CEO in 2023. Before Spar he was at Woolworths. 'I have had the privilege of working closely with Oliva for many years and have immense respect for his leadership and the legacy he leaves. 'Thanks to the strong foundation he has laid, I approach this next phase with confidence that, together with our talented team, we will continue to push forward and deliver on our growth ambitions for Southern Africa,' said Swartz. ALSO READ: Is Spar in trouble? Retailer closes stores as sales decrease Spar SA CEO leaves to lead McDonald's Spar wished Olivia well as the CEO of McDonald's South Africa. He will assume his role on 1 July 2025. The retailer said Oliva's time at Spar helped the Group navigate some of the most challenging periods, including the Covid-19 pandemic, the implementation of SAP, and the broader adoption of new technologies across the business. McDonald's said the appointment comes at a time when the fast-food chain is evolving in a rapidly changing consumer landscape. 'He was selected following a rigorous executive search process aimed at identifying a leader with the vision, discipline, and commercial acumen to guide the business into its next phase of transformation.' R4 billion hit Spar's financial results for the 26 weeks ended 28 March 2025, released last week, showed that it has taken a hit of more than R4 billion after exiting its operations with Spar Switzerland and the Appleby Westward Group (AWG). 'These businesses recorded aggregate post-tax losses of R4.4 billion, including impairments of R4.2 billion.' However, the loss was anticipated as the exit of the operations is part of Spar's strategy aimed at strengthening its balance sheet and recovering margins. ALSO READ: McDonald's SA CEO steps down Profits nosedive The financial results also revealed its operating profits nosedived by 5.7% to R1.35 billion, compared to R1.43 billion during the same period in 2024. Spar has also concluded the disposal of Spar Poland in January 2025. Which was one of the five key focus areas for Spar. The second key focus area that has been achieved is the completion of the Group's debt restructuring in March 2025 and May 2025. It's not all bad; the Group's revenue from continuing operations remained steady at R66.1 billion, while gross profit increased to R7.1 billion. In Southern Africa, wholesale turnover increased by 1.7%. Combined grocery and liquor wholesale revenue rose by 1.1%, while retail revenue increased by 1.9%. NOW READ: Pick n Pay CEO receives the highest salary in retail. Here's how much others get
IOL News
10-06-2025
- Automotive
- IOL News
Rising costs of maintaining outdated driving licence machine alarm South African watchdogs
Transport Minister, Barbara Creecy, said the driving licence card printing machine had been out of service for 38 days since April 1, resulting in a backlog of 733 000 licence cards. . Image: GCIS Amid talks over the past 10 years about the government obtaining a new licence card machine, the Organisation Undoing Tax Abuse (Outa) said it is concerned over the millions of rands spent on maintaining the one and only printer after several breakdowns. This was after Transport Minister, Barbara Creecy, said the machine had been out of service for 38 days since April 1, resulting in a backlog of 733 000 licence cards. Creecy disclosed this in response to a written parliamentary question from Rise Mzansi leader, Songezo Zibi. Creecy said the machine was broken for 17 days in 2024/25, 48 days in 2023/24, and 26 days in the 2022/23 financial year. The department paid R9 267 862 for the repair and maintenance in 2022/23, R1 651 772 in 2023/24, R544 747 in 2024/25, and R624 988 so far. The department also had to fork out R4.4 million for overtime payments between the 2022/23 and 2024/25 financial years. Creecy said she has directed that a declaratory order be sought from a competent court on the tender to acquire a new machine, in order to ensure that no further irregular expenditure occurs. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Government continues to spend millions repairing and maintaining its only driving licence card printing machine. Image: SUPPLIED Outa's chief executive officer, Wayne Duvenage, said the organisation was concerned by the length of time it takes for the department to get the court to nullify the contract - riddled with irregularities and potential corruption. 'Why does it take so long to get this process done?' he asked. 'Lots of money spent on maintaining and overtime costs to catch up with backlogs. This is very concerning. The government has been talking about a new driving licence card machine for about 10 years now, with multiple tenders awarded and cancelled for the past 5 years and still, we are nowhere near resolving this issue. Incompetence and political interference at its best,' Duvenage said. Department of Transport spokesperson, Collen Msibi did not respond to a request for comment on Monday.
