SOUTH AFRICA – Old Mutual Insure (OM Insure), a subsidiary of Old Mutual Limited, has announced that it has signed a share purchase agreement that will see it acquiring 100% of Genric Insurance Company Limited.
Based in Gauteng, Genric Insurance Company is a licensed non-life and specialist insurer focused on bringing innovative and niche insurance solutions to market.
The transaction, according to the company, will expand its customer base in the accident, health as well as medical and other niche insurance markets.
“This deal brings us closer to our goal of customer-centricity, as we will be able to access a wider range of valued-added products and innovative offerings,” OM Insure MD Garth Napier says in a statement.
“It will also give us access to new insurance markets with low-cost products that can contribute meaningfully to our transformation strategy.”
The deal is, however, still subject to regulatory approvals, as well as Prudential Authority and Competition Commission approvals.
As a specialist insurer, Genric Insurance has built its business by partnering with underwriting management agencies, start-up businesses, insure-tech companies and brokers.
“We are pleased to start a new chapter with Old Mutual Insure. Genric has built a solid reputation as an insurer with quality, niche offerings. The acquisition allows these products to reach a wider footprint,” Genric CEO MC Du Toit said in a statement.
“We are looking forward to seeing the expansion of the offering under the Old Mutual Insure brand. I’m excited that Genric’s profitable growth and innovation has caught the eye of one of Africa’s largest insurers.”
The announcement of the deal comes almost two weeks after competition authorities raided Old Mutual offices on suspicions that it, together with eight other major life insurers, were engaging in collusive practices to fix prices and/or trading conditions in respect of fees for life insurance and other investment products.
The Competition Commission’s investigation also includes industry peers BrightRock Life; Discovery; FMI, a division of Bidvest Life; Hollard Insurance Group; Momentum, a division of MMI; Professional Provident Society (PPS) and Sanlam.
Old Mutual has denied any wrongdoing, adding that it will be cooperating with competition authorities in efforts to clear the company’s name.
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