Sanlam, one of the continent’s largest insurers, says that the impact from Covid-19 and the associated lockdown has dented earnings by nearly 40%, in part due to a "significant increase" in claims related to the pandemic.

Sanlam says that operating earnings for the 10 months ending October would have been 4% higher than the previous corresponding period had it not been for the pandemic. As a result, operating earnings for the period fell 33%. The profit warning underlines the difficulties facing the industry as it sets aside more money to cover Covid-19 death claims and grapples with weak demand for insurance products because consumers’ debt-squeezed finances are taking another hit from large-scale layoffs...

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