Shares of JSE-listed insurers resilient amid scandal report
13 May 2021 - 10:21
byKarl Gernetzky
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
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.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
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.
gernetzkyk@businesslive.co.za
FSCA wants to see more progress on credit life insurance
Underwriters face conundrum in making pandemics insurable again
Sanlam’s R2bn Morocco deal shows faith in Africa strategy
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Insurance market Lloyd’s to suffer ‘large loss’ after Suez Canal blockage
Hollard dragged into Namibian Covid-19 claims debacle
Outsurance has settled most business interruption claims, says RMI
Sanlam to lower costs in digital drive for greater market share
Liberty gets a R4.8bn Covid pounding
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.