Sanlam has $ 22bn since the beginning of last year due to the Covid-19 pandemic, the group announced on Thursday when it released its half-year results.
Santam continues to have contingent business interruption claims (CBI) and the policyholders 700 million, increasing the total CBI payments to R1.7 billion at the end of August this year.
The group assumes that the existing reserves will reduce the effects of Covid-19 Excess mortality will largely weaken the operating result for 2021.
“However, there remains considerable uncertainty about the effects of future waves, possible variants and progress in the introduction of vaccinations,” she warned.
< The group expects to maintain modest reserves to mitigate any mortality losses after 2021.
Sanlam said that the near-term economic outlook in South Africa is improving with the outbreak of the third Covid- 19 wave and the unrest in Gauteng and KwaZulu-Natal that resulted in loss of lives, livelihoods and property damage.
“It is likely that this will negatively affect consumer and business confidence as a result of these events so the economy in South Africa will continue to recover, but has suffered a setback. ”
The spread of vaccination is also having a significant impact on the prospects for economic recovery for SA, the group said / p>
The impact of Covid-19 on the death rate in the group’s Africa operations, where excess reserves are more limited, has increased in the first six months of this year, and this trend is expected to continue for the remainder of the year continue.
Sanlam has identified several initiatives aimed at limiting the future impact of Covid-19 on future mortality losses in its operations. These include:
- “fair and reasonable” increases in group annual renewable risk premiums, some of which have already been implemented; and
- Implementation of underwriting changes in the second half of 2021 by taking a risk-based approach that takes into account vaccination status for specific product lines for customers with specific risk profiles.