The Prudential Authority of the South African Reserve Financial institution has granted JSE-listed Capitec Financial institution – via its wholly-owned subsidiary Capitec Lifestyles – the licence it must habits a existence insurance coverage trade in South Africa.
In a Sens remark launched on Tuesday, Capitec says the transfer to use for the licence got here after adjustments have been proposed to third-party mobile captive laws in addition to the sturdy enlargement in insured buyer numbers.
Sooner than receiving the licence, Capitec have been providing credit score existence and funeral insurance policies to its consumers via two mobile captive agreements with the underlying insurance policies underwritten by way of approved mobile captive insurers.
Consistent with Zurich Insurance coverage Staff, mobile captive insurers are corporations wholly-owned by way of non-insurers and act as direct insurers or reinsurers for a father or mother corporate and its subsidiaries.
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“Capitec Lifestyles will, sooner or later, change the present mobile captive insurers as underwriter of Capitec’s credit score existence and funeral insurance policies,” the financial institution mentioned.
“Capitec stays dedicated to making sure that its purchasers proceed to benefit from the easy, inexpensive, available and personalized enjoy to which they’re accustomed.”
The proportion value of the Stellenbosch-based banking and monetary services and products team used to be up over 5% in afternoon industry on Tuesday, following the announcement, buying and selling at round R1634.63 a proportion.
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