AVBOB to share ZAR 13.1 billion cash bonus with members

6 January 2025

A man in a suit and red tie speaks at a podium with a microphone in front of an AVBOB-branded backdrop, addressing an audience.

At its Annual General Meeting last month, South African ICMIF member, AVBOB, announced exceptional results for the reporting financial year ending 30 June 2024. AVBOB said that while socio-economic challenges and inequality remain in South Africa, the mutual company remained encouraged by signs of political stability and an improving business outlook.

Thanks to its shared value business model, AVBOB declared a ZAR 13.1 billion cash bonus to be shared with its members. The AVBOB 65Alive Cash Benefit is due to launch in January 2025 with the previous AVBOB Reward Account centenary bonus being replaced by the new cash benefit.

Members of AVBOB are entitled to share in the profits of the business. These profits are shared as member benefits which are provided over and above the contractual policy benefits with profit allocations made from time to time at the discretion of the Directors.

During AVBOB’s 73rd Annual General Meeting held at the Group’s Head Office, Chairman of the Board, Jannie Venter, described the substantial bonus declaration during the Group financial results presentation as a demonstration of the importance of value creation for society.

“A shared national commitment to sound economic policy support helps to accelerate and drive sustainable benefit to society. Our shared value model, which fosters inclusivity and innovation, benefits all members and is a testament to the strong foundation of our mutual society,” said Venter.

AVBOB says this historic financial declaration is underpinned by the Group’s mission to provide meaningful and tangible support to its members. With the new declaration – AVBOB 65Alive – members will be eligible for payment on request on or after the first policy anniversary after the main insured person reaches age 65, subject to their policy having a minimum term of 10 years in force.

Growth and strategy

AVBOB CEO Carl van der Riet (pictured above) said despite prevailing economic pressures, the growth strategies of the business were gaining traction, strengthening its market position. He credited this to the resilience of the AVBOB business and its continued innovation.

Van der Riet said: “AVBOB is pleased to declare this substantial bonus to its members, which affirms our commitment to sharing the Society’s success. Leveraging our mutual status allows us to return value to our members, through our combined insurance and funeral service offerings.”

Van der Riet explained that the core focus of the business remains sustainable growth and strategic differentiation and said AVBOB is also strengthening its stakeholder engagement by expanding its digital channels and introducing high-impact self-service platforms.

The member-centric approach of the business continues to shape AVBOB’s offerings. The newly launched AVBOB Member Rewards programme has seen unprecedented interest from AVBOB members and has generated renewed and positive brand energy. With over 300, 000 members currently benefiting from the programme, AVBOB says this stands as a testament to its ongoing commitment to value creation and sharing.

AVBOB says having achieved a Level 1 B-BBEE (Broad-Based Black Economic Empowerment) rating in the year under review highlights its commitment to transformation. For the business, the collective benefit of all communities forms a key part of its operations. And with over 2.7 million policyholders and 9 million individual lives assured, AVBOB says it aims to continue to uphold its legacy as a household brand to millions of South Africans across the country.

AVBOB’s 2023/2024 financial highlights

In the financial year ended 30 June 2024, AVBOB achieved the following:

The Group paid out R2,9 billion in policy benefits.
Premium income increased by 9.0% to ZAR 6,8 billion.
Net new business sales increased by 30.2% to ZAR 1,3 billion.
Increased the national footprint of funeral service, insurance and client service to a total of 380 offices.
Members received R498,9 million in free funeral benefits provided by AVBOB Funeral Service.
AVBOB donated its 70th container library and 500 trolley libraries to underserved schools, as part of its investment in literacy and education.

In addition, AVBOB celebrated receiving a number of awards and achievements last year. These included certified Top Employer for seven consecutive years and 2024 Sunday Times GenX Awards, Coolest Insurance Brand.