The share price of Clientèle, the JSE-listed insurance group, leaped over 10% on Monday after it reported a 100% increase in attributable headline earnings to R659.9 million for the year to June 30.
The performance included the first-time reported earnings of 1Life of R132.5m, as well as positive earnings contributions from Clientèle Life, Clientèle General and CBC Rewards. The impact of the recently acquired Emerald on group operating results was insignificant at the year-end. The share price was trading at R14.88 on Monday afternoon, up from R11.25 a year ago.
A dividend of 132 cents (125 cents) per share was declared. The company said there was a modest sense of optimism in the economy fueled by a reduction in load shedding, declining inflation and the improved stock market performance, particularly in the last quarter.
However, it would take time to see an improvement in the high unemployment rate and for positive change to reflect in the lives of the group’s target market.
“As a result, the group continues to experience high levels of withdrawals, suspension of debit order mandates, and disputes. As a consequence, the group has strengthened the withdrawal assumptions underpinning the reported results,” the directors said.
The acquisition of 1Life Insurance was approved by the regulatory authorities effective July 12, 2024, while the Emerald Life acquisition was approved by the Regulatory Authorities effective June 24, 2025.
1Life moved operations to the Clientèle Campus during the first half. However, the full integration of the people, systems, and processes was expected to take some time, but “initial signs are positive.”
The Emerald transaction was funded through free cash and the issue of preference shares by Clientèle Life. The acquisition resulted in goodwill of R104.9m, reflecting the anticipated synergies and future economic benefits expected from the integration of Emerald into the group operations.
The group remained in a sound solvency and liquidity position and continues to generate strong positive cash flows, the directors said.
Key elements of the group performance over the year included a 167% increase in the total insurance service result; a net investment result decrease of 33%, a 95% increase in the net issuance finance income; a 31% increase in operating expenses; and a 11% increase in taxation.
The total insurance service result increased by 167% to R458.3m from R171.6m in 2024, which was impacted by the positive Clientèle result which was the result of a small decrease in the insurance revenue, coupled with a decrease in attributable insurance expenses arising from a reduced impact of onerous contracts in the current year.
The consolidation of 1Life had a positive impact, driven by a strong production performance and a reduction in mortality assumptions, offset by an increase in withdrawal assumptions to align to recent experience.
The 33% decline in net investment result to R170.2m was impacted by the decrease in Clientèle's net investment result, which in turn was due to a decrease in the investments arising from net maturities, an increase in the liability for IPF (Insurance Protection Fund) tax on the Single Premium business, higher net returns on both the recurring Premium Savings business and the shareholder portfolio; and, finance costs from 1Life that reduced the investment result.
Group operating expenses increased by 31% to R551.2m, driven by once-off costs as part of the integration of 1Life as well as the acquisition of Emerald, and cost increases in the Clientèle Rewards business on the back of strong revenue growth, the addition of 1Life operating costs and amortisation of intangibles arising from the acquisition of 1Life.
Recurring Embedded Value Earnings of R1.27 billion were earned for the year (2024: R654.6m), an increase of 93.9%, which includes the consolidation of 1Life and Emerald.
“In this challenging environment, the group remains focused on treating its clients well and providing products and services that meet their needs. The Ggoup will continue to improve the delivery of our products and services to the market conveniently and efficiently.”
The successful integration of Emerald would be a key focus area and presented “a considerable opportunity for growth.”
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Financial data provided by: iress, 15min delay
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Updated: September 2025
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