Santam to buy MTN’s R400-million device insurance book

Short-term insurer Santam has announced it’s acquiring MTN South Africa’s mobile device insurance book, which has about 400 000 policies and a gross written premium value of nearly R400-million.

The deal was approved on Monday by the Competition Commission but remains subject to the fulfilment of various conditions precedent, including other regulatory approvals, which could take up to 12 months.

Santam CEO Tavaziva Madzinga said in a statement that the acquisition was an “opportunity to expand the company’s refreshed strategy, which seeks to lay a foundation for future growth through partnerships”.

“An important focus of the strategy is the building of partnerships across various sectors including telecommunications, among others…,” he said.

Santam has a wider strategic alliance with MTN Group, and is working with the telecoms giant through aYo Holdings, MTN’s insurtech platform.

Read: Naked Insurance raises over R300-million in series-B funding round

“Through aYo, the alliance will continue to build and develop digital insurance and investment offerings that provide people across Africa with easier access to financial service products, particularly those people who have typically been unable to access traditional distribution channels,” Madzinga said.

The agreement follows an announcement in November 2022 of a strategic alliance to market insurance and investment products across Africa between Sanlam and MTN Group.  – © 2023 NewsCentral Media

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