The Insurance and Pension Commission (IPEC) has suspended Jupiter Insurance amid indications the company is facing solvency challenges.
According to an IPEC fourth quarter short-term insurance report for the year ended December 31, of all direct short-term insurers, only Suremed Insurance Company and Jupiter Insurance company reported solvency ratios that fell below the prudential minimum requirement of 25%. The average solvency ratio decreased from 64% as at September 30 2011, to 47% as at December 31 2012.
Commissioner of Insurance and Pension and Provident Funds, Manneti Mpofu said the suspension was with immediate effect.
“It is hereby notified . . . that Jupiter Insurance Company Limited has been suspended from writing new business with immediate effect,” said Mpofu in a notice.
“In an addition, Jupiter Insurance Company limited has been prohibited from disposing of any property connected to protect existing and prospective policy holders.”
Mpofu, early this month, indicated plans were underway to raise minimum capital requirements for the sector.
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She said following recovery of the sector after the adoption of multiple currencies in 2009, new capitalisation levels could result in ownership changes.