For almost two years, 3Sixty Life has been subject to a curatorship deemed necessary by the Prudential Authority (PA) due to concerns about its solvency recapitalisation plan.
Yet today, as the leader of an organisation that has shown tenacity, resilience and a remarkable ability to bounce back from adversity, I am left with one question: why does this curatorship persist?
When the decision was made in December 2021, it was under the presumption that our company had failed to maintain its solvency ratios, primarily due to the ravages of the Covid-19 pandemic.
Like many, we faced challenges because of the lockdown. We marshalled our resources and leant heavily on our collective expertise, buoyed by the commitment of our staff and the loyalty of our clients.
Despite the odds and constraints of curatorship, 3Sixty Life made significant profits and generated almost five times the amount of cash it had during the onset of curatorship. We are currently in full compliance with the minimum capital ratio and just under 50% of the solvency capital ratio.
In simple terms, 3Sixty Life has recapitalised itself despite being denied the chance to develop new business for 24 months.
Most insurance companies placed under curatorship face a grim fate — the loss of clients, an inability to cover overheads and the heartbreaking failure to pay out claims, and liquidation within three months.
We must wonder if this curatorship is clouded by underlying biases. Is our company, due to its leadership or its ethos, being held to a different standard than others? Would the scenario be different if 3Sixty Life were under white leadership or ownership?
We remained robust, with 80% of our business sourced internally through Numsa Financial Services and 3Sixty Client Solutions, sister companies with 3Sixty Life in Doves Group Holdings.
We made sacrifices and lost revenue as we didn’t allow our subsidiaries to sell insurance policies from other insurance companies to avoid potential cannibalisation of the 3Sixty Life book of business. As a result, our employees and group companies experienced dwindling commission income. No bonuses were paid and only low-earning employees were given meaningful increases. We were committed to ensuring not a single employee faced retrenchment.
Yet our accomplishments and the evident vitality of our business are perpetually clouded by this enduring curatorship. This glaring disjunction forces us to question the nature of our ongoing treatment. Why, in the face of unmistakable evidence of our good performance, is 3Sixty Life still perceived and treated as a business teetering on the edge? The delay in acknowledging our hard-fought progress and in reinstating our full operational rights is not just disconcerting, but puzzling.
Despite our significant efforts, we find ourselves at a crossroads. We are being forced to consider a plan B, which will trigger the demise of 3Sixty Life and its ultimate liquidation.
Having achieved the solvency requirement and proven that allegations of mismanagement were false, we find it dishonest and illogical to expect further sacrifices to continue.
We must wonder if this curatorship is clouded by underlying biases. Is our company, due to its leadership or its ethos, being held to a different standard than others? Would the scenario be different if 3Sixty Life were under white leadership or ownership?
White-owned businesses often complain the most about red tape and I wonder how loud their complaints would be if they were to get the 3Sixty Life treatment from the PA or any state institution.
The continued curatorship, despite our clear accomplishments, forces us to question the motivations behind such decisions. Are current curatorship protocols and approaches in South Africa reflective of on-the-ground realities? Or do they require re-evaluation?
While confident in 3Sixty Life and the backing from our parent company Doves Group Holdings, we believe it is time to think carefully about closing this chapter and continuing to serve our customers and stakeholders differently, without this lingering and debilitating cloud of curatorship.
Msibi is acting group CEO of Doves Group Holdings, 3Sixty Life’s parent company.
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