Old Mutual said on Wednesday that it was too early to determine whether additional provisions related to Covid-19 would be required at the end of its first half-year that runs to June 30.
In the first quarter, South Africa’s second largest insurance firm paid out R2.7 billion worth of Covid-19-related death claims, leaving about R1.3bn in reserves set aside to help it manage the pandemic.
Old Mutual had increased its short-term provisions by almost R4bn in the December 2020 period, as claims outstripped the funds it set aside in the first half amid a second more severe wave of Covid-19 in South Africa.
It said the reserve would be assessed at June 30, 2021, taking into account the possibility of further waves and other developments relating to the pandemic.
“Our claims experience is in line with expected claims levels assumed in the December 2020 pandemic reserve, set up for the anticipated impacts of Covid-19 in 2021,” the company said.
Old Mutual said its measure of operating profit was up 52 percent in the five months to May 31, at R2.6bn.
REUTERS