For many years, HLGC has had sufficient capacity to cover losses and does not reinsure. Historically it reinsured through the reinsurance market, in particular Zurich Re and then through its erstwhile wholly owned subsidiary, HFG(I) ICC in Guernsey, which it closed a few years ago, as it was no longer needed.
HLGC was originally funded by R20 million through grants and non-interest bearing loans. A subsequent loan arrangement with the then IDT, which was later unwound, created a capital pool of R200 million for HLGC. A portion of that was granted to Housing for HIV NPC to assist in the HIV risk management. Currently HLGC has a healthy balance sheet, with more than sufficient capacity to cover its obligations.