Botswana’s home grown insurance company Bona Life is now back to business after its former Statutory Manager Paul Masie reassured investors of its viability.
This culminated with shareholders refinancing the business with a whooping P84.2 million to breathe new life into it. The company had found itself not meeting the Insurance Act requirements and was placed under a statutory management by the regulator, Non-Banking Financial Institutions Regulatory Authority (NBFIRA).
Bona Life was released from the statutory management by NBFIRA to resume business last week.
Briefing the media, former Bona Life Statutory Manager Masie said the company is now solvent. He noted the business was placed under a statutory management for a number of reasons.
According to him, the reasons included absence of a management structure as required by the Regulator (NBFIRA) as all of its senior managers including the CEO Regina Vaka had resigned.
“Moreover, they were unable to meet the Prescribed Capital Target (PCT) requirements as per the Insurance Industry Act. Put differently the assets of the company were less than its liabilities as required by the Act. This was primarily as result of the CMB and CMBF1 saga,” buttressed Masie.
Former Bona Life Statutory Manager confirmed that the business has been recapitalised as he was tasked with finding the investors to put money in the business and that was successfully achieved.
So, the pensioners and policy holders are now ascertained that their benefits are well protected.
As part of statutory management obligations, the recruitment of the management commenced with the appointment of the Chief Operations Officer (COO) Gosalamang Dintwa.
More appointments for the senior positions will be made soon, said the officials.
Bona Life shareholding remains the same, but it is subject to change in light of the fact that the Capital Management Botswana (CMB) which held 25% of Bona Life is placed under liquidation.
“By nature, liquidation is a lengthy process and the market will be informed of the changes once this has been finalised. The BOP and Bona Life are currently the major creditors in the joint estate of CMB and CMBF1 which is under liquidation. As such the two have resolved to settle the minority creditors in order to finalise the recovery of the assets in the two entities,” said Bona Life.
Bona Life, which was previously led by Regina Sikalesele-Vaka, shut its doors in July 2018 owing to a stalemate between its shareholders that led to the company operating without the board.
Bona Life COO Dintwa said that the business is now ready to get back into the market for the best.
A confident Dintwa, who doubles as the Acting Chief Executive Officer (CEO), indicated that the future is bright for the business; urging the clients to remain calm.
According to him, the business will stay cautious going forward to ensure that it guards against what disturbing circumstances that it found itself in such as placed under a statutory management.
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