Liberty reports spike in mortality claims

JSE-LISTED financial services group Liberty Holdings yesterday reported a spike in mortality claims and announced plans to assess its pandemic reserve at the end of next month on the possibility of a third wave of Covid19. Liberty, whose subsidiaries include Stanlib, Liberty Life and Liberty Two Degrees, flagged that significant uncertainty related to the evolution and impact of the pandemic.

“The reserve will be assessed at June 30, 2021, taking account of the possibility of further waves and other developments relating to the pandemic,” said the group in its operational update for the quarter to the end of March.

Liberty established the R3 billion pandemic reserve a year ago as a means of assuring clients that Covid-19 claims and costs, which could arise in future, would be adequately covered.

Last year, Liberty dealt with an increase in life cover claims and saw a rise in mental and incapacitation claims. As a result, death and disability claims rose to R11.7bn last year, an 11.4 percent increase on claims in 2019. |