• REVITALISING OODI WEAVERSJuly 29, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted • Debswana, De Beers move to help • preserve cultural heritage DEBSWANA Diamond Company and De Beers Group have embarked on a collaborative initiative to support… Read more: REVITALISING OODI WEAVERS
  • HIV/ AIDS fight compromised?  July 29, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted   Monitoring in limbo due to CD4, viral reagents shortage CALISTUS BOSALETSWE editors@thepatriot.co.bw   Botswana was hit by a shortage of CD4 and viral screening reagents… Read more: HIV/ AIDS fight compromised?  
  • Foreign reserves get depletedJuly 28, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted Significant drop linked to decline in diamonds revenue Reserves went down by P0.9 billion as 31st May 2025 Govt forced to borrow more and more Ndaba… Read more: Foreign reserves get depleted
  • Pennywise Investments (Pty) LtdJuly 28, 2025
    RelatedPosts Pennywise Investments (Pty) Ltd Solace Pty Ltd – Farm Worker CHOPPIES – Distribution Center Manager
  • Solace Pty Ltd – Farm WorkerJuly 28, 2025
    RelatedPosts Pennywise Investments (Pty) Ltd Solace Pty Ltd – Farm Worker CHOPPIES – Distribution Center Manager
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
  • Login
  • Register
Friday, August 1, 2025
-6 °c
Columbus
6 ° Sat
13 ° Sun
15 ° Mon
16 ° Tue
The Patriot On Sunday
Advertisement
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
Cart / $0.00

No products in the cart.

  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
The Patriot On Sunday
No Result
View All Result
Home Business

Bona Life goes under Statutory management

patriot by patriot
November 21, 2020
in Business
237
0
491
SHARES
1.4k
VIEWS
ShareShareShare

The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) informs stakeholders that Bona Life Insurance (Pty) Ltd has been placed under statutory management effective from the 20thJanuary, 2020, due to a series of non-compliance issues.

Bona Life is a significant player in the life insurance sector based on total asset value, with more than 95% of its business in annuities. The Authority is keenly aware that the recent developments at Bona Life and subsequent media reports may cause some uncertainty and discomfort amongst its annuitants, insurance policyholders and other stakeholders.

RelatedPosts

REVITALISING OODI WEAVERS

Foreign reserves get depleted

New player enters Insurance market

“Following non-compliant transgressions by Bona Life, the Authority has placed the entity under statutory management which is the most appropriate enforcement measure relative to its nature of non-compliance issues. A statutory manager will effectively take over the management of the entity, ensuring the smooth continuation of its business operations and protect the interests of Bona Life’s clients in the interim”, said O.M. Ramasedi, Chief Executive Officer.

Ramasedi elaborated that one of the Authority’s core functions is to foster the safety and soundness of regulated entities with the aim of contributing toward the financial stability of the local financial services system.

“There are a series of interventions that the Authority undertakes before placing a regulated entity under statutory management and these interventions are corrective in nature. It is prudent that I clarify that the Authority’s role is to regulate and supervise non-bank financial institutions and ensure their compliance to financial services laws. This is distinct from the corporate governance role that an entity’s board plays in overseeing the daily operations and strategic direction of the regulated entity. The two must not be confused”. Said Ramasedi.

Bona Life’s financial position appears adequate to meet its financial obligations

Bona Life’s financial position as per the latest records available with NBFIRA based on value of assets at that time, indicate it’s ability to meet its financial obligations to its annuitants and policyholders. Insurers are required to hold the greater of the Minimum Capital Target (MCT) or Prescribed Capital Target (PCT).

Bona Life presently meets the MCT, which is the lowest amount of capital in absolute currency terms that an insurer is required to hold for licensing and ongoing operation. 

On the other hand, with regard to the PCT the Authority has previously requested Bona Life to seek a capital injection in order to meet the PCT. The PCT is the amount of assets in excess of liabilities that an insurer must hold to cushion against negative business experience that could result in premiums and technical reserves not being sufficient to cover the losses suffered. PCT also serves as a regulatory warning system.

To date Bona Life has not secured the required additional capital to meet the PCT. However, in spite of this, Bona Life’s position as mentioned above appears to enable it to meet its financial obligations to its annuitants and policyholders. This may however not be sustainable in due course should the asset values change and the risk exposure continue to grow without a corresponding capital injection.

NBFIRA prioritises the protection of clients and their investments

Financial services laws for the Non-Bank Financial Institutions (NBFI) sector, seek to protect consumers in a variety of ways, one of which is to protect the integrity of investments made by NBFIs whether on their own behalf or on behalf of their clients. It is the accepted corporate governance norm that an entity’s board is the custodian of that entity’s investment policy and strategy and this is the case for Bona Life. In light of this, the Authority does not anticipate the resignation of the Bona Life CEO to have a direct bearing on the entity’s investments strategy.

Ramasedi stated that as the Authority regulates and supervises the NBFI sector, it seeks to foster amongst other functions stable and safe NBFI’s that are operated in a fair, orderly and efficient manner. It is in the pursuit of these objectives that the Authority’s supervisory and enforcement process involves coordinated and efficient interventions which are aligned to the risk-based supervisory approach used by the Authority. This is designed to ensure that the interventions are proportional to the breaches being addressed. Ramasedi added that the Authority adheres to confidentiality clauses and will not divulge details about Bona Life’s operations nor will it speculate about the future of Bona Life.

Ramasedi concluded by stating that Bona Life’s prevailing challenges must be interpreted within the right context and not as a continuation of previous non-compliance transgressions nor in relation to other NBFIs.

“The Authority takes advisory and enforcement action for non-compliance as and when they occur and ensures appropriate remedial action is taken. The Authority will keep stakeholders updated accordingly when deemed necessary,” said Ramasedi. 

Related

Tags: Bona LifeinsuranceNBFIRA

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Previous Post

Not all disabilities are visible

Next Post

Lesotho police hunt for PM’s wife

Related Posts

REVITALISING OODI WEAVERS
Business

REVITALISING OODI WEAVERS

July 29, 2025
Foreign reserves get depleted
Business

Foreign reserves get depleted

July 29, 2025
New player enters Insurance market
Business

New player enters Insurance market

July 21, 2025
Power supply crisis dampens economic recovery
Business

Power supply crisis dampens economic recovery

July 15, 2025
Banks in liquidity squeeze
Business

Banks in liquidity squeeze

July 14, 2025
BSB’s net profit jumps 230%
Business

BSB’s net profit jumps 230%

July 9, 2025
Next Post
Lesotho police hunt for PM’s wife

Lesotho police hunt for PM’s wife

Please login to join discussion
  • REVITALISING OODI WEAVERSJuly 29, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted • Debswana, De Beers move to help • preserve cultural heritage DEBSWANA Diamond Company and De Beers Group have embarked on a collaborative initiative to support… Read more: REVITALISING OODI WEAVERS
  • HIV/ AIDS fight compromised?  July 29, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted   Monitoring in limbo due to CD4, viral reagents shortage CALISTUS BOSALETSWE editors@thepatriot.co.bw   Botswana was hit by a shortage of CD4 and viral screening reagents… Read more: HIV/ AIDS fight compromised?  
  • Foreign reserves get depletedJuly 28, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted Significant drop linked to decline in diamonds revenue Reserves went down by P0.9 billion as 31st May 2025 Govt forced to borrow more and more Ndaba… Read more: Foreign reserves get depleted
  • Pennywise Investments (Pty) LtdJuly 28, 2025
    RelatedPosts Pennywise Investments (Pty) Ltd Solace Pty Ltd – Farm Worker CHOPPIES – Distribution Center Manager
  • Solace Pty Ltd – Farm WorkerJuly 28, 2025
    RelatedPosts Pennywise Investments (Pty) Ltd Solace Pty Ltd – Farm Worker CHOPPIES – Distribution Center Manager
The Patriot On Sunday

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?