Lion of Africa halts its operations with immediate effect
It cites lack of profitability and a tough economic climate.
Short-term insurer, Lion of Africa Insurance, which is a subsidiary of JSE-listed Brimstone, has decided to voluntarily wind down its operations with immediate effect, citing a lack of profitability and tough economic market.
Lion of Africa, which offers insurance policies to small and medium-sized enterprises and public-sector entities, said its business has also suffered from an onerous regulatory environment and increased solvency requirements.
Lion of Africa is being placed into “run-off”, or in other words, its operations have been halted with immediate effect.
Brimstone said the decision to wind down Lion of Africa’s operations was not taken lightly, and significant efforts were made to find alternative solutions.
Lion of Africa will continue to meet all obligations under existing policies but will not be issuing any new policies, said Brimstone, which is a parent company of Lion of Africa.
Brimstone said Lion of Africa made up less than one percent of its gross asset value and has “no significant financial or other impact on Brimstone.”
“Although the decision to place Lion into run-off was based on sound business rationale, it was still a particularly difficult decision to make which was only considered once all other viable options had been explored and exhausted. Brimstone will continue to
provide support to Lion, its leadership team, and staff during this difficult time.”