Absa Insurance to sell unit to Santam

Cape Town - Absa Insurance Company (AIC) has entered into an agreement to sell its intermediated commercial short-term insurance business to Santam.

The transaction will see AIC’s intermediated commercial short-term insurance policies transferred to Santam.

“The transaction is in line with Absa’s strategy to deliver sustainable returns in line with our Bancassurance model. The transaction ensures that we are able to focus on building an efficient short-term insurance business,” said James Trybus, general manager: regional operations, personal and commercial products at AIC.

As part of a process that commenced in early 2015, AIC will sell the majority of its intermediated commercial short-term insurance business by way of a portfolio transfer. AIC policies will be substituted with Santam policies and assets and liabilities relating to the business will transfer to Santam.

The transaction is subject to approval by the Registrar of Short-term Insurance and the Competition Commission.