By Favour Nnabugwu
African financial services firm Alexander Forbes has concluded its exit from insurance business following the sale of transfer of its risk and retail life business to South African insurer Sanlam Life.
The business operations formed part of AF Life, a long-term insurance company and wholly owned subsidiary of Alexander Forbes that provides group risk and retail life insurance policies with a focus on small to medium clients.
The business now discontinued recorded gross insurance premium income of R 1.0 billion (USD 72.5 million) for the year ended 31 March 2021 from over 630 institutional clients and approximately 3,700 individual clients.
Sanlam purchased the AF Life policies for a total cash consideration of R 100 million (USD 7.2 million), 50% of which will be deferred in two equal payments, 12 and 24 months, from date of the acquisition.
“We are pleased with the Proposed Transaction, in the context of the current operating environment,” said Dawie de Villiers, Chief Executive Officer of Alexander Forbes.
“This disposal is the final step in our move away from providing insurance underwriting and reaffirms Alexander Forbes’ strength as a trusted adviser to our clients. The Proposed Transaction not only benefits Alexander Forbes, through the realisation of value for shareholders, but also balances solutions for clients and protects and values the employees of the Business,” de Villiers continued.
“Sanlam understands the importance of delivering financial well-being and I am confident that the clients and employees moving across in this process are in good hands. We will continue to play a key role to the valued clients of AF Life delivering best advice throughout the transition and into the future.”
Headquartered in South Africa, Alexander Forbes provides retirement, investment solutions and wealth management to clients in its home country and in Namibia, Botswana, Zambia, Uganda, Nigeria and Zimbabwe.
