Capitec Bank announced today that funeral plan income soared by 39% to R906 million in 2022 versus R650 million in the previous year.
The banking group attributed the rise in funeral plan income to the continued success of the funeral product which increased the number of active policies.
As of 28 February 2022, the active book was 1.7 million policies in 2022 financial year compared to 1.2 million policies in 2021.
Capitec Bank said the average active funeral book for the current year was about 500 000 policies more than the prior year.
“The substantial growth in the average active book was attributable to the fact that we issued an average of approximately 97 000 policies (2021: 85 000 policies) per month during the current year, and our persistency ratio improved from 49% to 58%,” said the bank.
“Due to the volume growth premium income generated by the active book increased by 54% from R2.8 billion to R4.3 billion.
“In line with expectations, the risk premium paid to our reinsurers increased in line with the premium income.”
Capitec Bank added that the average collection rates improved to 87% (2021: 85%) which contributed to a lower provision for unpaid premiums for the year.
It added that a total of 93 878 claims (2021: 55 287) amounting to R2 billion (2021: R1.2 billion) were settled during the current financial year.
