Santam has agreed to buy MTN SA’s device insurance book for an undisclosed sum.
The mobile operator’s device insurance book has just over 400,000 policies, with annual gross written premiums of almost R400m.
The deal between remains subject to the fulfilment of various conditions, including regulatory approvals, which are expected within the next 12 months. The Competition Commission approved the acquisition unconditionally on March 13.
The agreement follows the announcement in November 2022 of a separate deal between Sanlam and MTN Group that will see them jointly distribute insurance and investment products across Africa. Sanlam owns 62.3% of Santam while MTN Group is the holding company that owns MTN SA.
“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 SA market through aYo Holdings, the MTN Group’s InsurTech platform,” Santam CEO Tavaziva Madzinga said.
“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.”
MTN SA CEO Charles Molapisi said the company “is equally excited to be partnering with Santam and the Sanlam Group in driving financial inclusion across SA and providing customers with insurance and investment products tailored to the needs of the SA consumer.”
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