Old Mutual Insure on Monday announced that it has signed a share purchase agreement to acquire 100% of niche short-term insurer Genric for an undisclosed amount.
Genric partners with and has equity interests in a number of specialist underwriting management agencies, start-up businesses and insure-tech innovators.
The managing director of Old Mutual Insure, Garth Napier, said the transaction would satisfy a number of strategic objectives for the company.
“This deal brings us closer to our goal of customer-centricity, as we will be able to access a wider range of valued-added products and innovative offerings. It will also give us access to new insurance markets with low-cost products that can contribute meaningfully to our transformation strategy,” said Napier.
He said the transaction brings Old Mutual Insure not only the ability to rapidly test and scale new product ideas, but also access to a new customer base in the accident and health, medical insurance, as well as other niche insurance offerings such as value-added products, cash in transit, equine, marine, travel, taxi, heavy commercial vehicles, and shack insurance.
Given that Genric has a number of specialist underwriting management agencies, start-up businesses and insure-tech innovators, Napier said Genric can help OM Insure better understand “the customer of the future” by designing appropriate solutions.
Genric chief executive MC du Toit said: “We are pleased to start a new chapter with Old Mutual Insure. Genric has built a solid reputation as an insurer with quality, niche offerings. The acquisition allows these products to reach a wider footprint.”
The transaction is subject to regulatory approval.
