Following an application by the Executive Officer of the Financial Services Board (FSB), the South Gauteng High Court on 6 September 2012 granted a provisional order to place the life insurance business of Resolution Life Limited (Resolution Life) under provisional curatorship in terms of the Financial Institutions (Protection of Funds) Act, 28 of 2001. The application was informed by the financial unsoundness of the company and certain other concerns of the Registrar of Long-term Insurance with respect to the management of Resolution Life.
Ms Ashlene Van Der Colff and Mr Gerdus Dixon have been appointed as provisional curators of the business of Resolution Life. The return date of the provisional order is 16 October 2012 when interested parties may be heard and a report by the provisional curator will be considered by the Court.
In terms of the provisional order, the curator will take immediate control of the business of Resolution Life and investigate the affairs, business and operations of the company, particularly its unsound financial position and certain allegations against Resolution Life.
In related news, we learnt that the registration of Prosperity Life Limited as a long-term insurer was cancelled with effect from 20 August 2012.