Durban – SANTAM took a pounding on the JSE yesterday as shareholders weighed the Western Cape High Court’s finding that the insurer was liable to pay full business interruption losses to companies that suffered as a result of lockdown measures imposed by the government to contain the spread of Covid-19.
The insurer’s share price plunged 4.98% to R270 after the court ordered Santam to pay Ma-Afrika for the impact over the entire policy period of 18 months, without limitations. The court also ordered that Santam pay Ma-Afrika’s legal costs.
The company said it had taken note of the Tuesday ruling, warning that the detailed and complex nature of the judgment, as well as its broader implications, meant that it needed to be carefully considered.
It said that it would also be important for it to discuss the implications of the judgment with all its stakeholders, including reinsurers, in order to arrive at a comprehensive response.
Santam said that losses were global in nature and were also subject to appeal court proceedings in different countries.
“The response of the global reinsurers, which were in effect insurers to the insurer, is important in helping us to reach finality on this matter,” Santam said.
“We do understand that all parties need finality as a matter of urgency and therefore remain committed to doing our utmost to ensure that we achieve that as quickly as possible.”
