Momentum Metropolitan Namibia, through their subsidiary Momentum Short Term Insurance Namibia, will acquire all the issued shares of Alexander Forbes Insurance Namibia. After the two entities signed the binding agreement, the transaction will be finalised pending regulatory approvals from the Namibian Competition Commission and the Namibia Financial Institutions Supervisory Authority.
Alexander Forbes (AF) Insurance Namibia is a personal and commercial lines insurance provider with a business model that focuses on a personalised approach to sales and service with niche offerings. AF is the fourth largest insurance provider by market share in gross written premiums in the country.
Following the acquisition of AF’s short-term insurance business in South Africa by Momentum Namibia’s parent company, the companies felt it made sense for Momentum to also acquire their Namibian short-term business.
Dawie de Villiers, CEO of Alexander Forbes, said: “We are pleased with the proposed transaction which brings to a close the sale of all our short-term insurances businesses. In selecting Momentum Short Term Insurance (Namibia) Limited, we are ensuring our clients will continue to experience the superior benefits and service excellence they have at Alexander Forbes. Momentum is a company that understands the value proposition we have provided to our clients and our employees, and they will continue to invest in enhancing it.”
According to Johan Barnard, CEO of Momentum Short Term Insurance Namibia, “AF Insurance Namibia was started a mere 10 years ago by Johan Verwey, the capable MD and co-founder of AF Insurance Namibia, and he brings a wealth of local knowledge and entrepreneurial skills, which will fit in perfectly with our client-centric approach”. Barnard continued: “This transaction is an excellent strategic fit for Momentum Short Term Insurance. We are on a path of strong growth and expansion. As the two entities integrate, our focus will be on continuing to deliver the same level of excellent service and competitive solutions that clients have come to rely on. We have a shared understanding of the value proposition presented and we look forward to showing enhanced capability and seamless efficiency. We are confident with what we have to offer and look forward to offering a warm Momentum welcome to our new clients and employees. As a business, we will remain committed to continuously improving and evolving.”
Momentum Short Term Insurance Namibia’s current focus is predominately on commercial insurance and selective personal lines; however, the acquisition will enable a broader future offering due to a very strong presence in personal lines and other niche insurance markets. AF Insurance Namibia furthermore has a strong Alternative Risk Transfer (ART) business that includes self-insurance and cell captives; and will be able to benefit enormously from Guardrisk, a Momentum Metropolitan subsidiary and the largest ART underwriter in Africa.
Apart from for their exceptional fit-for-purpose product offering, AF Insurance Namibia also created a unique distribution channel, which will be very valuable in MSTI Namibia’s aggressive growth strategy across all product lines.
Commenting on the transaction, Group CEO of Momentum Metropolitan Namibia, Grant Marais, stated: “We are pleased to enter this agreement with Alexander Forbes. We share the same values and culture and have been very impressed with the existing team in their understanding of the local market and the innovative solutions they are offering. Acquiring another established short-term insurer just more than two years after establishing Momentum Short-term Insurance Namibia shows our confidence in the business and will fast track Momentum Short-term Insurance Namibia’s growth aspirations. It also gives us access to a unique set of insurance skills and many years’ experience we can benefit from as a group in Namibia. We have already identified significant synergies and will maximise opportunities, which we believe will result in increased revenue to the benefit of stakeholders and the economy at large”.
2020-04-16 10:01:22 | 3 months ago