Banking

These are the most valuable insurance companies in South Africa

Staff Writer

 ·27 Jul 2017

Brand Finance has published a list of the top 50 most valuable brands in the country for 2017, with mobile operator MTN retaining its position as the most valuable brand with a value of R40.8 billion.

Despite a recession, political instability and a higher unemployment rate, the total value of the top 50 brands still managed to show a marginal improvement – by 3% year-on-year – from R384 billion in 2016 to R395 billion in 2017, Brand Finance said.

Jeremy Sampson, director of Brand Finance Africa, said: “South Africa is in many ways typical of an emerging market with an economy founded on natural resources and mining, underpinned by banking and telcos. However, when a country is struggling to grow at 1% whilst its brands grow by 3% it says much about the future potential if not interfered with.”

Included in the top 50 brands are eight insurance companies, led by Old Mutual, and propped up by Outsurance, jumping into the top 50 in 2017.

Old Mutual is ranked 17th overall, and has seen its brand value rise by $90 million over the past year. Discovery, and Momentum Investments both saw their value decline over the same time period.

Investec, which is ranked eight on the list overall in 2017, aims to move into offering life insurance to its clients.

Reuters recently reported that the company, which focuses mainly on private banking and asset management, plans to offer life insurance from as early as the third quarter.

Best SA insurance brands

Overall, MTN remains the nation’s most valuable brand, however, the company’s financial results for 2016 reflected the most challenging year in the company’s 22-year history, fuelled by regulatory, macro-economic and political challenges.

The mobile operator’s brand value is nearly 30% lower than it was at its peak in 2014, illustrating a downward trend for the brand despite its growth, Brand Fiannce said.

It noted that Vodacom, the nation’s second most valuable brand at R24.3 billion, is closing the gap. “Should MTN continue its regressive trend, it may be that Vodacom closes the gap and usurps MTN as South Africa’s most valuable brand in the near future,” it said.

Top 20 SA brands

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