Hollard targets growth with P544m Regent takeover
Pauline Dikuelo | Wednesday January 25, 2017 16:40
Briefing the media this week on their merger with Regent Botswana Group, Frans Prinsloo said there is growth particularly in the individual life market and commercial short-term market which is boosted by growth in Botswana’s gross domestic product (GDP) this year.
“Botswana’s insurance industry is a highly competitive one, large when compared with most African markets, yet relatively small by international levels with insurance premiums only constituting three percent of the GDP,” he said.
Prinsloo added that the market potential has contributed to them acquiring Regent Botswana Group from Imperial Holdings, a deal they say is expected to result in the creation of Botswana’s largest short-term insurance company. The R697m (P544m) acquisition, which was approved, by Non-Bank Financial Institutions Regulatory Authority and Competition Authority is expected to create more jobs thus creating Botswana’s largest short-term insurer. Hollard Insurance’s operations in Botswana include Hollard Insurance Botswana, a short-term insurance company, and Hollard Life Insurance Botswana, a life assurance company. The Regent Botswana Group comprises Regent Life Botswana, a life assurance company, and Regent Insurance Botswana, a short-term insurance company. According to Prinsloo, the unification of the two entities will be creating a Botswana-based insurer with significantly larger financial resources and a comprehensive collection of skills.
“We anticipate exciting growth in the Botswana insurance sector and plan to participate in that growth through the vision and innovation shared by the two entities,” he said. He assured that the merger would not affect policies and their benefits and would however update their clientele about the merger process proceeds, including any updates to policies, changes in branding and claims process. In addition he said they would ensure a smooth transition of the two businesses into a merged entity, a process that is expected to be completed by July this year.
For her part, the Managing Director of Hollard Insurance, Jane Tselayakgosi said bringing Hollard and Regent brands into one business builds on their shared strategy of establishing strong and enduring partnerships that benefit their brokers and end consumers by providing reliable, accessible and affordable solutions that cater for diverse and changing needs.
She said both companies have built sterling reputations based on their business stability, knowledge of the Botswana market, professional business practices, strong broker relationships and innovation track records. Together, Hollard and Regent in Botswana reported gross written insurance premiums of approximately P714 million in their recent financial year.
“Our brokers and customers will benefit from this partnership with even stronger service delivery and cover for both individual and commercial insurance needs,” she said.