Numsa-owned life insurance company, 3Sixty Life, has suffered a major legal setback after its bid to seek leave to appeal a high court ruling that placed it under curatorship was thrown out of court.
3Sixty is licensed to conduct life insurance business, specifically in the life and funeral products, for groups and individuals.
Gauteng high court judge Fiona Dippenaar in September ruled that 3Sixty Life be placed under final curatorship and ordered it to pay the costs of two counsels employed by the Prudential Authority, which initiated the curatorship process.
The court further threw out the appointment of Yashoda Ram as the curator and replaced her with her former colleague, Tinashe Mashoko of BDO Advisory Services.
The company then approached the court for leave to appeal, an application which has now been dismissed.
“The Prudential Authority became aware that 3Sixty Life had failed to maintain its business in a financially sound condition by not holding eligible own funds that are at least equal to the minimum capital requirement or solvency capital requirement, as prescribed, whichever is the greater,” a statement from the Prudential Authority reads.
“3Sixty Life informed the Prudential Authority that the failure was attributed to higher-than-usual claims experienced, as well as a shortfall in its budgeted premium income, both as a result of the Covid-19 pandemic and related lockdown restrictions.”
Khandani Msibi, 3Sixty CEO, was unfazed by the court’s decision.
“We are going [to the] SCA [Supreme Court of Appeal], the status quo remains. It’s not often a judge overturns his/her own judgment. This is the first case in the history of curatorship where a judge throws out the report of a curator, what then was the point of appointing a curator?” he tweeted.
The Prudential Authority said it also plans to oppose the company’s appeal to the SCA.
“Based on the information available, the Prudential Authority remains of the view that the curatorship of 3Sixty Life is in the best interests of its policyholders. The Prudential Authority will work together with the Financial Sector Conduct Authority, which is responsible for the regulation of market conduct, and the curator to ensure 3Sixty Life’s policyholders continue to be properly protected during this process.”
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