Shares of JSE-listed insurers resilient amid scandal report
The shares of major JSE-listed insurers showed little reaction to a report that the companies had lost millions of rand in an alleged insurance scandal, faring slightly better than the general market in early trade on Thursday.
The Daily Maverick reported late on Wednesday that Santam, Hollard, Old Mutual and Momentum Metropolitan’s Guardrisk had collectively lost R944m, saying this had rattled the industry and regulators.
According to the report, Insure Group Managers, an intermediary that collected insurance premiums from customers, allegedly invested cash it was meant to pay over to the companies into its own illiquid, high-risk and ultimately loss-making assets.
In morning trade, Santam’s shares were down 0.59% at R255.42, Momentum’s 1.4% lower at R20.43, while Old Mutual’s gave up 1.23% to R12.80.
The JSE had slipped 1.73%, with global markets under pressure amid concerns of accelerating inflation in the US, which could prompt the tightening of monetary conditions there.
Hollard is unlisted.