The Hollard Insurance Group on Wednesday completed its R1.8 billion acquisition of the Regent Insurance Group from Imperial Holdings, cementing its place as South Africa’s second-largest short-term insurer.
Hollard originally announced its intention to acquire the Regent Group from Imperial in September 2015, but the deal was subject to a lengthy regulatory approvals process.
The Regent Insurance Group comprises of insurance operations and investments in South Africa, Botswana, Zambia and Lesotho.
The acquisition was formally completed following Financial Services Board approval of the South African leg of the transaction, after the 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.
Hollard chief executive Nic Kohler said the integration of the two businesses would 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 a year in premium income.
“Acquiring Regent is an important milestone for Hollard, given our objectives of increasing our African footprint and building scale in our South African business,” Kohler said.
“The deal expands our life distribution capability and significantly enhances our presence and capability in the commercial vehicle space.”
Kohler said existing Hollard and Regent policyholders would continue to enjoy the same benefits and commitment to service excellence that they were currently receiving.
Kohler added Hollard was actively pursuing opportunities in sub-Saharan Africa and other markets where it sees potential for growth.