Santam to Buy MTN’s R400-Million Device Insurance Book

Santam CEO Tavaziva Madzinga

Santam has announced it’s acquiring MTN South Africa’s mobile device insurance book, which has about 400 000 policies. Short-term insurer Santam has announced its acquiring MTN South Africa’s mobile device insurance book, which has about 400 000 policies and a gross written premium value of nearly R400-million.

The deal was approved on Monday by the Competition Commission but remains subject to the fulfilment of various conditions precedent, including other regulatory approvals, which could take up to 12 months.

Santam CEO Tavaziva Madzinga said in a statement that the acquisition was an “opportunity to expand the company’s refreshed strategy, which seeks to lay a foundation for future growth through partnerships”.

Santam CEO Tavaziva Madzinga
Santam CEO Tavaziva Madzinga

“An important focus of the strategy is the building of partnerships across various sectors including telecommunications, among others…,” he said.

Read also : MTN Commits Billions to Ghana 5G Network After Tax Dispute Settled

Santam has a wider strategic alliance with MTN Group, and is working with the telecoms giant through aYo Holdings, MTN’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,” Madzinga said.

The agreement follows an announcement in November 2022 of a strategic alliance to market insurance and investment products across Africa between Sanlam and MTN Group.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Santam Acquires Insurtech Start-Up JaSure

Edward Gibbens, Santam’s executive head of the C&P insurance business

Santam, the short-term insurer, has acquired the remaining 49% stake it doesn’t already own in insurance-technology company JaSure for an undisclosed sum. This comes two years after Santam acquired 51% of JaSure.

Company sources say that the buyout will bring digital offerings for clients across the financial services group, particularly in its commercial and personal (C&P) insurance business.

Edward Gibbens, Santam’s executive head of the C&P insurance business
Edward Gibbens, Santam’s executive head of the C&P insurance business

JaSure offers app-based digital insurance to clients, allowing them to choose what they want to insure and when to do so. Clients typically insure items such as motor vehicles, cellphones, laptops, cameras, bicycles, sports equipment, camping gear, eyewear and musical instruments using the app.

Read also : Moroccan Fintech Startup WafR Raises $455,000

Clients can purchase insurance instantly for an individual asset, with the option to switch cover on and off through the app.

“We believe we can open up the potential for increased value-add to our clients and the Santam Group through a 100% ownership. We aim to leverage the existing and powerful client experience and younger market reach of JaSure, while maximising the Santam efficiencies and wider distribution capability, including the Sanlam Group,” Edward Gibbens, Santam’s executive head of the C&P insurance business, said in a statement. 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry