Hollard in talks to acquire Regent Insurance

Pauline Dikuelo | Friday June 5, 2015 16:13

 

According to information obtained this week, Imperial Holdings is looking to sell its shareholding in Regent Insurance Company and Regent Life Assurance Company to the Hollard Insurance Group.

Imperial said it had entered into exclusive negotiations with the Hollard Insurance Group for the sale of these businesses. According to the 2014 Non-Banking Financial Institution Regulatory Authority (NBFIRA) Annual Report, Regent and Hollard are both involved in life as well as general insurance businesses. The deal will affect the two businesses in three countries namely South Africa, Botswana and Lesotho.

If the deal gets regulatory approval, it would reduce the number of the life insurance firms locally from nine to eight while general insurers will drop to seven.

Explaining the rationale behind the sale, Imperial said there was no strategic competitive financial advantage from their stake in Regent even though the insurance subsidiary had grown strong since its establishment.

“Imperial decided to dispose of the business and insurance licences of Regent in a transaction structured to allow the group continued access to the income flows generated by the distribution of vehicle-related insurance and value-added products through Imperial’s extensive dealership network,” said Imperial in a statement.

Imperial stated that the exclusivity period for the negotiations would be three months and shareholders would be advised as soon as the parties either terminate negotiations or intend to seek the required governance and regulatory approvals.

Regent Life Botswana officials said it was still premature to comment on the deal, while efforts to get a statement from Hollard Life Botswana did not bear fruit.