S.Africa’s Previous Mutual says too early to say if extra COVID-19 provisions wanted By Reuters

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© Reuters. FILE PHOTO: Workers clean windows in front of the headquarters of Anglo-South African financial services company Old Mutual in Cape Town, March 7, 2016. REUTERS / Mike Hutchings / File Photo

JOHANNESBURG (Reuters) – South Africa’s Old Mutual said Wednesday it was too early to tell if at the end of the first half of the year ending Jan.

In the first quarter, South Africa’s second largest insurance company paid out COVID-19-related death claims worth 2.7 billion rand ($ 189.5 million), leaving about 1.3 billion rand in reserves to deal with the pandemic.

Old Mutual had increased its short-term provisions by nearly 4 billion rand in December 2020 as claims exceeded funds it had set aside in the first half of a second, more serious wave of COVID-19 in South Africa.

On Wednesday, it said the reserve would be assessed on June 30, 2021, taking into account the possibility of further waves and other developments related to the pandemic.

“Our claims experience corresponds to the expected loss amounts assumed in the December 2020 pandemic reserve that was established for the expected effects of COVID-19 in 2021,” the company said.

Old Mutual said its operating profit increased 52% to R 2.6 billion in the five months ended May 31.

($ 1 = 14.2504 rand)

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