SA insurers build war chests to manage fifth Covid-19 wave
Covid-19 deaths contributed to excess claims of R4.2 billion for Sanlam in 2021
South African life insurers are shoring up their capital reserves as they brace for a fifth wave of coronavirus infections.
Africa’s biggest insurer, Sanlam, said on Thursday it will hold three times its typical discretionary capital, increasing reserves to R3bn, to give it headroom to grapple with uncertainties caused by the pandemic.
“The group will hold a significantly higher level of discretionary capital until such time we are satisfied that there is no risk to group earnings and dividends from the pandemic,” said CEO Paul Hanratty. ..