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BISAN - Supreme Court of Appeal Judgment on Ma-Afrika Indemnity Period
SANTAM LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1918/001680/06
Bond company code: BISAN
(“Santam” or the “Company” or the “Group”)
Supreme Court of Appeal judgment on Ma-Afrika indemnity period
Santam has noted today’s judgment of the Supreme Court of Appeal (“SCA”) on the length of the
indemnity period to be applied to the Ma-Afrika Hotels (Pty) Ltd and Stellenbosch Kitchen (Pty) Ltd
(“Ma-Afrika”) policies with contingent business interruption (“CBI”) extensions.
The SCA ruled that the 18-month indemnity period referred to in Ma-Afrika’s main business interruption
section of the policy that deals with physical damage, also applies to the contagious and infectious
diseases extension of the contract. The SCA judgment impacts certain policies structured similarly to the
Ma-Afrika policy, issued by the Hospitality & Leisure (“H&L”) division of Santam, comprising less than a
third of the 3 200 notified CBI claims.
Santam accepts the outcome of the appeal which provides the legal clarity the Company was seeking.
Santam will now finalise the claims that are directly impacted by the SCA judgment.
Santam is also making good progress to finalise the remainder of the CBI claims. Gross CBI claim
payments of more than R2.1 billion have been made to date, inclusive of the relief payments of R1
billion made in August 2020. Based on the CBI claims settled and the expected reinsurance recoveries,
no adjustment to the net CBI claims estimate of R1.7 billion as at 30 June 2021 is expected. The first
reinsurance recovery was made in September 2021.
Santam will continue to review its net CBI claims estimate as additional claims information relating to
the longer indemnity period is submitted.
The financial information included in this announcement has not been reviewed or reported on by
Santam’s external auditors.
Bellville, Cape Town
7 October 2021
Debt Sponsor: Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 07-10-2021 02:00:00
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