High Court rules construction guarantees fall under insurance law
Judgment confirms that such guarantees require licensing under the Insurance Act, resolving a long-running classification dispute.
Guarantees
Hollard secures R2.7m payment despite community unrest defence
The insurer successfully upheld the enforceability of a guarantee after a civil engineering company failed to complete a project because of community disruptions.
‘The free lunch from guarantees may come at a hefty cost’
Investors should remember that the price of the guarantee is not only in the return they lock in, but also in the future returns they give up by being out of equity markets.
FSCA extends professional indemnity and fidelity insurance exemptions
The FSCA last week published two notices relating to the guarantee, professional indemnity (PI) and fidelity insurance (FI) exemptions granted to certain types of FSPs. The FSCA has once again extended, to 31 […]
FedGroup Views on Guarantees
By John Field, CEO FedGroup The recent crisis enveloping African Bank brings to mind the 2002 banking crisis that crippled Saambou – similarly hobbled by risky micro-lending practices. Despite African Bank performing well […]
