Santam, South Africa’s largest short-term insurer, has agreed to buy 60% of the A1 Ordinary Shares in MultiChoice’s insurance business, NMSIS. The purchase, worth R925m, was made in partnership with Sanlam Life.
NMSIS is a registered South African composite micro-insurer and authorised financial services provider and is licensed to underwrite both general and life insurance products in South Africa.
It has been underwriting insurance cover for the past 20 years under the DStv brand of MultiChoice focusing on device, installation, funeral, subscription waiver and debt waiver insurance products.
Gloria Tapon Njamo, chief executive officer of Santam’s Partner Solutions business, said the acquisition was an acceleration to the company’s strategy, which seeks to explore new market segments through partnering with other corporates.
“A key strategic pillar and growth vector for Santam is partnering with companies like MultiChoice, which presents us with a unique opportunity to create substantial mutual value.
“With a base of approximately 8 million subscribers in South Africa, MultiChoice provides a robust and scalable channel for Santam to distribute tailored general insurance products. As Santam we will leverage our experience in device insurance to increase the penetration of related general insurance products into the MultiChoice subscriber base, said Tapon Njamo.
