THE AVBOB Group delivered exceptional results for the reporting year. While socio-economic challenges and inequality persist in the country, AVBOB remains encouraged by signs of political stability and an improving business outlook.
Through its shared value business model, AVBOB has declared a R13.1 billion cash bonus to its members. The AVBOB 65Alive Cash Benefit is set to launch in January 2025. The previous AVBOB Reward Account centenary bonus will be 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. Profit allocations are made from time to time at the discretion of the directors.
Chairman of the Board Jannie Venter, at AVBOB’s 73rd annual general meeting held at the group’s head office in Irene Link, described the substantial bonus declaration at 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.
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 are 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 said despite prevailing economic pressures, the growth strategies of the business are gaining traction, strengthening its market position. He credited this to the resilience of the AVBOB business and its continued innovation.
“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,” he said.
Van der Riet explained that the core focus of the business remains sustainable growth and strategic differentiation. 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 more than 300 000 members currently benefiting from the programme, it stands as a testament to AVBOB’s ongoing commitment to value creation and sharing.
AVBOB achieving a Level 1 B-BBEE 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 nine million individual lives assured, AVBOB aims to continue to uphold its legacy as a household brand to millions of South Africans across the country.
The 2023/2024 financial highlights
In the financial year ending June 30, 2024, AVBOB achieved the following:
- The group paid out R2.9bn in policy benefits
- Premium income increased by 9.0% to R6.8bn
- Net new business sales increased by 30.2% to R1.3bn
- Increased the national footprint of funeral service, insurance and client service to a total of 380 offices
- Members received R498.9m 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
- Choice Awards
- The 2024 Best Funeral Service category in the Best of Mossel Bay Readers’ Choice Awards
- The 2024 PMR.africa Gauteng Provincial Survey Business Excellence Awards
- Die Burger newspaper Readers’ Choice Awards “Jou Keuse” 2024 “Begrafnisdienste” category
- The 2024 Sunday Times GenX Awards, Coolest Insurance Brand