Santam makes provision for R2b more to pay out business interruption claims
Santam has posted its results for the year ended 31 December 2020.
It described the operating results as "acceptable", in the face of the negative impact of Covid-19.
The short-term insurer estimated its liability for business interruption claims at R5.3billion, but said it could recover R3.3 billion from re-insurers.
As a result, the group did not declare a final dividend.
In January, Santam finally accepted it's liable for contingent business interruption claims after a court order to pay them.
Bruce Whiftfield asks CEO Lizé Lambrechts how much Santam's paid out so far.
Remember in August last year we paid out just over R1 billion in relief payments to our clients... at our own risk, because we knew our clients were suffering... That will be offset against the claims we get now.Lizé Lambrechts, CEO - Santam
We've been processing claims since January when we got the legal certainty, but this is quite a complex matter and we need a lot of information from our clients. We've settled a few, but we are processing quite a bit.Lizé Lambrechts, CEO - Santam
We expect the claims to start being paid quite soon in substantial numbers.Lizé Lambrechts, CEO - Santam
What are Santam's remaining outstanding liabilities?
Lambrechts says at the moment they can only work on assumptions, dependent on the information they receive from clients and the money to be received from re-insurers.
You will see in our financial results that we provided an additional R2 billion net, so that would be after re-insurance recovery as well.Lizé Lambrechts, CEO - Santam
Lambrechts says that, surprisingly, Santam has had a fairly normal claims year apart from the contingent business interruption claims.
Listen to the complete interview on The Money Show:
Source : https://twitter.com/SantamInsurance/photo
The world’s 2nd-largest economy - after the United States - grew at its fastest ever pace in the first quarter of 2021.Read More
The poorest region in the world is projected to grow at 3.4%, kneecapped by the slow pace of Covid-19 vaccine rollouts.Read More
The Continent’s biggest retailer is leaving Nigeria. Lester Kiewit interviews Africa business analyst Victor Kgoemoeswana.Read More
Personal finance advisor Warren Ingram on how to save and invest for your child’s future education.Read More
“From those projects, we’ll see whether green hydrogen is feasible,” says environmental lawyer Margo-Ann Werner.Read More
Thomas Kgokolo has been appointed as the interim CEO of SAA, which is still in the throes of a nearly 16-month-long business rescue process.Read More
Is there a way to take some of the risks out of investing in cryptos? Yes, by building a balanced portfolio that helps spread some of the risks.Read More
Entrepreneur Pavlo Phitidis shares valuable tips on making your business stand out from the competition.Read More
The latest Deloitte consumer survey shows we are more worried about our finances than Covid, says Mike Vincent (senior partner).Read More
The situation in Lekwa Municipality is untenable, says Astral Foods CEO Chris Schutte. Govt has been ordered to intervene.Read More