Santam buys MTN SA’s mobile telecoms device insurance book

Short-term insurance company Santam has sealed an agreement to buy MTN SA’s insurance book.

The deal comes as MTN’s device boasts over 400 000 policies and an annual income of written premium valued at almost R400 million.

Dubbed Africa’s largest short-term insurer, Santam’s proposal was approved by the Competition Commission in March without conditions, it said in a statement.

It is announced that regulatory approvals are expected to be completed within the next year and the acquisition, as well as the alliance, is aimed to support MTN South Africa in broadening the reach of device protection to their client.

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

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 South African market through aYo Holdings, the MTN Group’s InsurTech platform,” he 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.”

On behalf of MTN, Charles Molapisi is the Chief Executive Officer of the telecoms company and said the deal would be beneficial to the company’s customers.

“MTN South Africa is equally excited to be partnering with Santam and the Sanlam Group in driving financial inclusion across South Africa and providing customers with insurance and investment products tailored to the needs of the South African consumer,” he said.