Liberty Holdings, wholly owned by the Standard Bank Group, has confirmed its health business is shutting up shop after running at a loss for several years.
The company has not divulged exactly how many staff will be affected by the closure but told Moneyweb it is exploring “all possible redeployment opportunities within the group”.
Its decision to close the health unit follows a “comprehensive review of the health business’ long-term prospects within the context of its current lack of scale”, it said, which has resulted in operating losses for several years.
Liberty Health operates from South Africa and facilitates reinsurance with associated administration by utilising its licensed cell captive in Mauritius.
In 2014, after being on close watch due to solvency levels below the statutory requirement of 25%, Liberty Health subsequently merged with Bonitas Medical Fund in October 2016 under Bonitas’ name.
Until now, it has provided access to Bonitas and Bestmed, and gap cover for existing medical aid members.
Liberty said its decision to close the health business has no impact on its other operations.
“The existing provision of health solutions will continue as normal from the insurance licensed subsidiaries in Kenya, Uganda, Zambia, and Lesotho, as well as its administration business in Mozambique.”
Moneyweb article – Liberty Health reaches the end of the road (Open access)
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