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April 1998

In terms of the 1943 Insurance Act, where a husband has ceded policies to his wife and his estate is declared insolvent, any proceeds paid in terms of the policies or the policies themselves (as the case may be) are deemed to fall into his estate...

April 1998
A look at the advantages

The distinguishing difference between a sinking fund policy and an endowment is that, in terms of the former, there is no necessity for there to be a life assured although there must be an owner in both cases. Consequently a sinking fund policy...

April 1998
Looking abroad

The rationale of investing overseas is simple, and is applicable to any investor anywhere in the world. As you diversify your investment, you reduce your level of risk.
By investing overseas you are able to earn the same return as you would...

April 1998
Fair’s fair

A recent race discrimination court case has set a new precedent for the retirement fund industry and fund management practices. Leonard Dingier (Pty) Ltd was found guilty and has been ordered to make reparation for underfunded retirement funding...

April 1998
Control freaks

This report illustrates how, over a period of a little more than 100 years, life assurance legislation and regulation has grown in South Africa, at each step, gaining greater “control” of the business activities of life offices; at each step,...

April 1998
Rapid response

HIV and AIDS continue to pose a major threat to the South African health benefits industry. According to the Old Mutual Actuaries and Consultants 1997 Health Benefits Survey, 83% of companies surveyed participate in workplace AIDS awareness and...

April 1998
Very unfair

It was widely speculated that the tax on retirement funds would be increased to 19%, in line with the minimum rate applicable to individuals. Minister Manuel therefore caused a shock when he announced that this rate would be raised to 25%.

April 1998
Little room to manoeuvre

There is a trend toward lower budget deficits in world economies. As the accompanying graph shows, budget deficits as a percentage of gross domestic product (GDP) are falling in most economies. Most recently, the US budget deficit is expected to...

April 1998
Job switch hitch

Rising health costs are prompting companies to curb the post-retirement health benefits offered to new employees. Some companies offer little or no post-retirement health care to employees who join when nearing retirement.
“For mature people...

April 1998
A look at the rules

These guidelines are intended to protect members of retirement funds by specifying maximum exposure to certain asset categories. Retirement funds may invest up to 75% of their assets in equities and 25% of their assets in property. The combined...

April 1998
Young peril

Companies that offer group insurance, benefits on disablement or death in-service, or ill-health retirement to their members are likely to face a notable increase in the number of claims submitted to their group scheme, warned Neil Walton, an...

April 1998
Unshielding Zeus

Guardian National has agreed to pay a maximum of R376,5m for Aegis Insurance. Guardian advised March 12 that its due diligence exercise had been successfully concluded, “rendering the transaction complete and unconditional”.
The purchase...

April 1998
Failed attempt

The attempt by African Life to take control of Norwich Life has failed, with insufficient numbers of shareholders accepting the offer by the 13th March deadline. According to reports, acceptance had been forthcoming only from shareholders holding...

April 1998
Job losses

Southern Life and Momentum Life have come to agreement on a merger that will create the biggest listed company on the Johannesburg Stock Exchange with an estimated capitalisation of R250 billion. The deal, which is to take effect from 1st April,...

April 1998
Biggest listing?

As if last month’s flurry was not enough, merger fever continues with an announcement from Liberty Life Assurance of Africa and Standard Bank (Stanbic) that they are to merge their operations. The two have had a 20-year association, held together...

April 1998
Funds up for grabs again

At is only a year ago that government raised the question of SASRIA’s assets as a source of much-needed revenue. The suggestion was hastily rebuffed and yet, from recent reports, it is clear the idea never went away.
At issue is the fact...