MBABANE – Oracle Insurance Eswatini returned to profitability during the year ended February 28, 2026, posting a profit of E5.5 million.
This is compared to a loss of E3.6 million recorded in the previous financial year.
The profitability of the insurance firm follows stronger insurance revenue, increased investment income and favourable market conditions supported a turnaround in performance.
Oracle Insurance Eswatini is a composite insurer owned primarily by Vunani Limited, EswatiniBank and the Eswatini National Provident Fund (ENPF). Vunani Limited acquired a controlling interest of 52 per cent stake in the business in December 2019. ENPF owns 26 per cent stake while EswatiniBank owns the 22 per cent.
The insurance company’s result forms part of a broader recovery by parent company Vunani Limited, the Johannesburg Stock Exchange (JSE) and A2X-listed financial services group, which reported significant growth in earnings as several of its operating divisions benefitted from improved economic and market conditions during the reporting period.
According to Vunani’s latest Integrated Annual Report, the insurance segment, comprising Oracle Insurance and Oracle Life, generated revenue of R335.2 million, an increase from R278.1 million recorded in the previous financial year.
The segment delivered a profit of E5.5 million despite being impacted by an impairment of the value-in-force (VIF) asset amounting to E36.8 million, compared to an impairment of E18.1 million recognised in the previous year.
The VIF asset represents the present value of future profits expected from Oracle’s existing portfolio of insurance policies.
Despite the larger impairment charge, the segment benefitted from increased dividend income and higher interest earned from insurance investments.
Insurance assets also recorded positive fair value adjustments of E146.2 million during the year compared to E42.8 million in the previous reporting period. However, these gains were partially offset by negative fair value adjustments amounting to E178.5 million on insurance contracts and liabilities compared to E76.8 million previously.
The report shows that insurance remained the largest contributor to Vunani’s overall revenue, underlining the importance of Oracle’s operations within the group’s portfolio.
Fund management delivers strong growth
MBABANE – One of the group’s strongest performers during the year was its fund management division.
The segment, which includes Vunani Fund Managers Proprietary Limited and Vunani Fund Managers Botswana Proprietary Limited, reported revenue of R177 million compared to R136.1 million in the previous year.
The increase reflects growth in assets under management as well as the impact of strategic initiatives undertaken by the group.
A key development during the year was the merger between Vunani Fund Managers and Sentio.
The transaction was concluded in October 2025 and resulted in the creation of Vunani Sentio Fund Managers, bringing together two established investment management businesses.
The merger contributed to substantial growth in assets under management, which increased from R36.9 billion to R64.3 billion during the reporting period.
The enlarged asset base strengthened the division’s market position and contributed to improved profitability.
The asset administration segment also produced a strong performance.
The division, which includes Fairheads Benefit Services, Fairheads Financial Services and Verso Group, generated revenue of E215.5 million compared to E213.2 million in the previous year.
Profit increased significantly to E47.6 million from E34.6 million recorded in the prior reporting period.
The performance was supported by continued demand for administration services and the group’s ability to maintain operational efficiency.
Assets under administration within Fairheads amounted to R10.7 billion at year-end compared to R10.9 billion in the previous year.
Although slightly lower, the asset base remained substantial and continued to provide a solid foundation for earnings generation.
Favourable conditions support group recovery
MBABANE – The improved performance by Oracle came during a year in which Vunani benefitted from stronger equity markets and improved operating conditions across much of its business.
Group Chief Executive Officer (CEO) Ethan Dube said the operating environment remained favourable for most of the year.
“The operating environment was favourable for much of the year, with equity markets performing well. This supported the stronger business performance we experienced during the period, notwithstanding the market volatility experienced towards the end of the year due to the conflict in the Middle East and shifting geopolitical dynamics,” he said.
Against this backdrop, Vunani reported a significant improvement in financial performance. Group and insurance revenue increased by 17 per cent from E692.9 million to E808.8 million.
Operating profit increased from E80 million to E120.7 million. Total comprehensive income for the year amounted to E35.3 million compared to a loss of E3.4 million in the previous year.
Meanwhile, total comprehensive profit attributable to equity holders of the company amounted to E10.1 million compared to a loss of E11.5 million recorded during the prior reporting period. Profit attributable to shareholders increased to E36.4 million from a loss of E3.1 million in 2025.
Headline earnings improved to E16.4 million compared to a headline loss of E4.6 million, while earnings per share improved to 6.2 cents from a loss per share of 7.1 cents.
Vunani assets increase to E1.99bn
MBABANE – Vunani Limited’s financial position strengthened during the reporting period.
Total assets increased to E1.99 billion from E1.62 billion in the previous year.
Insurance-related investments increased to E898.3 million from E683 million, reflecting growth in investment portfolios and stronger market performance.
Cash and cash equivalents increased to E230.9 million from E164.9 million previously.
Insurance-related liabilities increased to R909.3 million from R705.8 million, largely due to actuarial valuation adjustments and movements in insurance contract obligations.
The increase in assets and cash resources highlights the group’s improved liquidity position and stronger balance sheet.
The Board declared a gross dividend of 10 cents per share out of income reserves, compared to 35 cents per share in the previous year.
The dividend will be paid on July 13, 2026.
According to the group, the dividend declaration remains aligned with its objective of achieving attractive long-term growth in operational profit while continuing to reward shareholders.
Looking ahead, management remains optimistic about growth opportunities despite ongoing geopolitical uncertainties.
Vunani Limited CEO Ethan Dube said the group would continue monitoring developments in South Africa and the broader region while positioning itself to take advantage of future opportunities.
“We continue to monitor developments in South Africa as well as the broader region and are confident of growth opportunities. We will continue to prepare business to take advantage of any growth opportunities,” he said.
... Fairheads sale marks strategic milestone
MBABANE – A major corporate development during the year was the completion of the sale of a 30 per cent stake in Fairheads to Old Mutual Corporate ventures.
The transaction was finalised in May 2025 and forms part of a broader strategy aimed at strengthening the group’s long-term growth prospects. Vunani Chief Executive Officer (CEO) Ethan Dube described the transaction as a significant milestone for the business.
“The sale marks a significant milestone for the group as the transaction was undertaken to establish a long-term strategic partnership with one of South Africa’s leading financial services institutions,” he said.
“We are beginning to see encouraging progress in the strategic initiatives between Fairheads and Old Mutual, with active engagement between the teams. We expect this momentum to keep building in the next year.”
Management believes the partnership will create opportunities for collaboration and support future growth initiatives. The institutional securities broking segment also recorded a notable improvement.
The division, which provides equity, derivative and capital market trading services, remained marginally loss-making but significantly improved its performance compared to the previous year.
Revenue increased by 39 per cent as economic conditions improved and trading activity strengthened.
According to the report, the increase was driven by higher trading volumes, reflecting stronger performance on the Johannesburg Stock Exchange and broader market improvements during the year.
