Santam warns on Covid-19 claims provisions
The insurer says actual claims may be lower — or higher — due to its Ma-Africa appeal
Santam has warned investors that its decision to appeal recent court rulings related to Covid-19 business interruption claims may significantly affect its provisions for such claims in future. It says the result of its appeal may see claims either being a lot lower, or higher, depending on the outcome of its appeal.
SA’s biggest short-term insurer raised its contingent business interruption (CBI) claims provisions by a further R1.7bn after the Western Cape High Court’s judgment against it in November in a case involving Ma-Afrika Hotels and Stellenbosch Kitchen, which suffered losses due to Covid-19. That was in addition to the previous R1.3bn increase in CBI provisions made in June...