The industry's total assets increased by 4% to R1.13-trillion at the end of December last year from R1.08-trillion at the end of December 2008. This brings the industry close to the pre-crisis asset levels of R1.15-trillion held at the end of 2007, the Association for Savings and Investment South Africa reported.

The life industry paid out benefits of more than R176-billion last year. This represents a slight drop of 3% compared to 2008, mainly as a result of a decrease in individual policy surrender values and lower retirement fund withdrawals. - Staff reporter

·                     No transactions, no fees 

First National Bank has introduced the Smart Account Zero - a no monthly fee transactional account - to allow customers who do not transact regularly a choice to suit their transactional behaviour.

FNB Smart Product House CEO Henry Walton said: "The Smart Account Zero is best suited to customers whose transactions vary from month to month; who do not transact regularly or do not receive an income every month.

"The interesting part is that a customer will really see the additional value in this product once they stop transacting. If you do not transact, you do not pay. This is a new concept in mainstream banking." - Staff reporter

·                     New low-risk fund 

Investment management firm Allan Gray has launched a new offshore fund for investors who want exposure to a low-risk global portfolio in major foreign currencies without using their own offshore investment allowance.

Called the Allan Gray-Orbis Optimal Fund of Funds, it gives investors access to a mix of the Orbis Optimal SA funds with a R500monthly debit order or a lump sum of R5000.

Allan Gray has an overall investment minimum of R20000 per investor account.

Aimed at conservative investors, the fund completes Allan Gray's suite of risk-profiled, rand-denominated offshore funds. - Staff reporter

·                     Contributions now taxable

The full amount of medical aid contributions paid by an employer is now a taxable fringe benefit.

Ron Warren, chairman of payroll software company nuQ, said that this has no effect on the tax payable by the employee, as the medical aid contribution paid by the employer and taxed as a fringe benefit is deemed to have been paid by the employee (see section 18(5)(b) of the Income Tax Act).

With regard to medical aid cap amounts, the monthly cap amount applicable to persons aged less than 65 has been raised from R625 to R670 each for the first two persons covered by a medical aid contribution, and from R380 to R410 for each additional dependant. - Staff reporter

·                     ABSA investment profits up

ABSA Investments, investment house of the Absa Group, reports a 41% increase in operational profit to R408-million last year while assets under management and administration grew by 30% from R118-billion to R153-billion.

Alan Miller, CEO of Absa Investments, said: "Online share-trading deal values increased by 82%, from R2.2-billion in 2008 to R4-billion in 2009.

"The Absa Select Equity Fund has won recognition as South Africa's top-performing general equity unit trust fund over three and five years.

"In addition, the Absa Absolute Fund, our flagship low-risk unit trust fund, last year enjoyed net inflows of almost R1-billion." - Staff reporter

·                     Old Mutual defeats volatility

Old Mutual says that its Smoothed Bonus Fund has now seen its 25th consecutive year of positive declarations despite the volatile global markets in the past three years.

Old Mutual's range of smoothed funds have enjoyed positive returns over the past three years of up to 9.8% per annum, which is 4.8% a year better than the returns of the most comparable average market-linked fund and 1.5% a year above inflation.

Old Mutual's smoothed funds hold a balanced portfolio of assets.

These include South African equities, bonds, property and some international assets

Life insurance dips. The life insurance industry saw a 5% dip in sales last year, taking the total to R62-billion in new premiums.