JOHANNESBURG – Following massive underwriting losses and suspected fraud in its claims and procurement departments, Lion of Africa Insurance has appointed Bongani Madikiza – former MD of Old Mutual’s Mass Foundation Cluster – as CEO from January 2016.
For the six months to June 2015, Lion of Africa – a wholly owned subsidiary of JSE-listed Brimstone Investment Corporation – reported an underwriting loss of R102.5 million, following ill-discipline and unwise risk-taking, Brimstone CEO, Mustaq Brey admitted at the time.
Adam Samie, the insurer’s CEO resigned earlier this year and in August Brimstone announced a forensic investigation into the company’s affairs, following suspicions of external and internal fraud within the claims and related procurement departments.
Brimstone appointed managing executive, Iqbal Khan as interim CEO and this week announced that Madikiza would fulfil this role from next year. Brimstone is one of Old Mutual’s black business partners.
Madikiza has worked for Old Mutual for 15 years. Old Mutual South Africa (OMSA) CEO, Dave Macready said he looked forward to “continuous engagements” with Madikiza and his new team. “We are confident that his appointment will further strengthen our important partnership with Brimstone,” said Macready.
Khaya Ntozini, currently MD of Old Mutual’s personal finance segment, has been appointed new head of MFC. Ntozini holds a Bachelor of Accounting Science from Unisa and completed an advanced management programme at Wits. He has been with Old Mutual for more than 20 years.
General manager of corporate customer solutions, Karabo Morule has been appointed as the new MD of the personal finance segment to replace Ntozini.