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...

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