Old Mutual Insure has signed a share purchase agreement that will see it acquire 100% of Genric Insurance Company (Genric) for an undisclosed amount.
Genric is a licensed non-life insurer that partners with and holds ordinary equity interests in a number of specialist underwriting management agencies, start-up businesses and insure-tech innovators.
The transaction will give Old Mutual access to a new customer base in accident and health, medical insurance, as well as other niche areas such as value-added products, cash in transit, equine, marine, travel, taxi, heavy commercial vehicles and shack cover, according to a Sens statement issued by Old Mutual on Monday.
“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,” said Garth Napier, Old Mutual Insure MD. “It will also give us access to new insurance markets with low-cost products that can contribute meaningfully to our transformation strategy.”
The proposed transaction, which remains subject to regulatory approvals including by the Prudential Authority (PA) and Competition Commission, is expected to enhance Old Mutual Insure’s ability to rapidly test and scale new product ideas as well as its understanding of customers’ future insurance needs, particularly in underserved markets. Centurion-based Genric has established an enviable track record of identifying and incubating start-up businesses and insuretech innovators since commencing operations in 2005.
“We are pleased to start a new chapter with Old Mutual Insure,” said Genric CEO MC du Toit. “Genric has built a solid reputation as an insurer with quality, niche offerings. The acquisition allows these products to reach a wider footprint. We are looking forward to seeing the expansion of the offering under the Old Mutual Insure brand.”
Old Mutual’s decision to acquire Genric Insurance follows a separate agreement in August that will see the firm buy a minority stake in Preference Capital, a specialist provider of funding to small and medium enterprises (SMEs). That deal gives Old Mutual the option of increasing its shareholding to a majority stake over time.
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