Santam buys MTN's R400m device book

Africa's largest short-term insurer Santam has agreed to buy MTN South Africa's mobile telecommunication firm’s device insurance book, which has just over 400 000 policies and an annual gross written premium value of almost R400 million.

In March, the Competition Commission approved the acquisition without conditions, Santam said in a statement, with regulatory approvals expected to be completed within the next year.

The acquisition, as well as the alliance, is aimed to support MTN South Africa in broadening the reach of device protection to their clients, in line with the importance of devices in the lives of customers.

Tavaziva Madzinga, the Santam Group CEO, said 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, while putting clients at the centre, he said.

"We are delighted to conclude this important step as part of the wider strategic alliance with the MTN Group and are excited at the prospect to develop further digitally enabled short-term insurance solutions for the South African market through aYo Holdings, the MTN Group’s InsurTech platform.

"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," he said.

Charles Molapisi, the Chief Executive Officer of MTN South Africa, said the partnership would benefit the company’s customers.

"MTN South Africa is equally excited to be partnering with Santam and the Sanlam Group in driving financial inclusion across South Africa and providing customers with insurance and investment products tailored to the needs of the South African consumer," he said.-Fin24