Client database of liquidated insurer Constantia sold for R20m

Tingey Injury Law Firm/Unsplash For more financial news, go to the News24 Business front page.JSE-listed Conduit Capital has announced the sale of its subsidiary Constantia Insurance Company Limited (CICL), which was placed into provisional liquidation in September. Conduit is planning to sell the entire issued share capital of Constantia Life and Health Assurance Company,  under which CICL falls, to Gauteng-based Affinity Financial Services for R20 million. The sale, which includes Constantia's client database, is expected to take place in the first half of next year.  "The disposal is expected to reduce operating costs and generate sufficient cash flow for Conduit Capital to remain a going concern," the group said in an update to shareholders on Wednesday.  Newsletter Daily SA Money Daily The biggest business, economic and market news of the day. Sign up

Constantia was placed into curatorship in August and provisionally liquidated the following month after it failed to shore up its balance sheet. This came after the Reserve Bank found it needed to hold a larger reserve of funds to meet its obligations to pay out policyholders. But Constantia was unable to find an investor willing to put in an estimated R450 million, leaving it at the mercy of the courts.  We live in a world where facts and fiction get blurred In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.