South Africa: Santam to Buy Investec Short-Term Insurance - AllAfrica.com

Edward WestJohannesburg

INVESTEC, the specializer banking group, planned to sell the short-term insurance concerns of Investec Private Depository Financial Institution to prima South African short-term insurer Santam, the companies said on Friday.

A memoranda of apprehension had been signed and a sale understanding was expected to be concluded in a month.

Santam executive director caput of people and branding Margaret Massie said the sale "is definitely a good thing" for Santam. It had been prompted by Investec wishing to concentrate on its core business, and from Santam's point of view, it was pleased to be associated with the Investec brand.

Massie said the short-term insurance concern from Investec was "a just size". The specializer banking grouping was one of the independent brokerage firms that contributed up to R700m to Santam's amalgamate yearly insurance premium income of about R13bn.

"The concerns will be bought into a new physical thing of which Santam will initially throw a 100% shareholding," Santam cerium Ian Kirk said. "Negotiations are under manner to name an independent 3rd political party to help us with the direction of certain facets of the new business," he said .

Massie said Santam had underwritten Investec's short-term concern for a figure of old age and the partnership "has been a good one".

Kirk said: "The Investec concerns stand for a significant income watercourse for Santam... this was an ideal chance for us."

Investec Private Depository Financial Institution Sturmarbeiteilung caput Alice Paul Hanley said the determination followed a strategical reappraisal that establish the coverage mercantile was non-core to the private banking concern model.

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"We are pleased to have got entered into this agreement with Santam, which will not only net income our clients and our staff, but will guarantee the sustainability for this concern ," Hanley said.

Both Hanley and Kirk said the dealing should not impact the day-to-day management of their coverage affairs.

Santam told stockholders at the end of last calendar month that newspaper headline net income for the twelvemonth to day of the month had been below outlook , primarily owed to take down investing returns, but overall growing and underwriting profit had been satisfactory.