Insurance Act, 2017 (Act No. 18 of 2017)Chapter 8 : Transfers of Business and Other Significant Transaction51. Acquisitions or disposals |
| (1) | An insurer (other than branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) or a controlling company must, prior to making a material acquisition or disposal, obtain the approval of the Prudential Authority. |
| (2) | The Prudential Authority must prescribe what constitutes a material acquisition or disposal for the purposes of subsection (1). |
| (3) | The Prudential Authority may refuse to approve a material acquisition or disposal if the Prudential Authority reasonably believes that such an acquisition or disposal will impede— |
| (a) | in the case of an insurer, the financial soundness of the insurer; |
| (b) | in the case of a controlling company— |
| (i) | the financial soundness of an insurer that is part of the insurance group; or |
| (ii) | the ability of the Prudential Authority to determine— |
| (aa) | how the different types of business of the insurance group are conducted; |
| (bb) | the risks of the insurance group and each person that is part of that insurance group; or |
| (cc) | the manner in which the governance framework is organised and conducted for the insurance group and each person that is part of that insurance group. |
| (4) | Despite any other law, any acquisition or disposal that is effected in contravention of this section is void. |