The Hollard Insurance Group, South Africa’s largest independent insurance group, has cemented its place as the second-largest short-term insurer with the completion of its R1.8 billion acquisition of the Regent Insurance Group from Imperial Holdings.
The acquisition was formally completed following Financial Services Board approval of the South African part of the transaction, after the South African Competition Tribunal approval was received in April. The conclusion of the South African portion of the deal comes after Hollard International Holdings' successful acquisition of the Regent Group's non-South African interests in Botswana, Zambia and Lesotho for an upfront consideration of R697 million in January 2017.
Nic Kohler (pictured), CEO of Hollard Insurance Group, said:
"Acquiring Regent is an important milestone for Hollard, given our objectives of increasing our African footprint and building scale in our South African business. The deal expands our life distribution capability and significantly enhances our presence and capability in the commercial vehicle space."
Kohler says the integration of the two businesses will strengthen Hollard's position as South Africa's largest independent insurance group, and result in a consolidated operation that employs more than 3,600 people and generates more than R20 billion per year in premium income.
The earlier acquisition of Regent's non-South African interests has already supported Hollard's international growth, which now contributes more than 20 percent of the Group's profits and is enjoying growth of almost 30 percent per annum.
According to Kohler, Hollard is actively pursuing opportunities in Sub-Saharan Africa and other markets where it sees potential for growth. "This expansion has been enabled by a strong skills base, infrastructure and balance sheet, as well as a partnership approach that places a premium on matching cultures," he said.
