Nico Holdings Limited says the sale of some stakes in each of its general insurance businesses to South Africa-based Sanlam Emerging Markets (Proprietary) Limited (SEM) has given rise to a partnership between the two that will create immense synergies.
After the transaction, the shareholding structure shows that SEM holds 49 percent in Nico General Insurance Company Limited and Nico Insurance (Zambia) Limited and 32.67 percent and 48.4 percent in Niko Insurance (Tanzania) and Niko Insurance (Uganda) Limited respectively.
“The new partnership will enable the Nico Group general insurance business benefit from, and have access to the Sanlam Group expertise in various areas including product development, staff training, risk management, information technology, underwriting, claims service, customer care and actuarial services,” says a statement from the Malawi Stock Exchange (MSE)-listed financial services group management yesterday.
Nico Holdings says the completion of the transaction is a milestone of Nico Group’s strategy to enter into smart partnership for the benefit of its clients and all stakeholders.
The group also says the partnership will also strengthen Nico Holdings’ professionalism with which it delivers in general insurance services.
“The transaction brings a new positive dimension on the market and customers in the general insurance space should expect to experience significantly improved service,” says the statement.
SEM, which has interests in India, Malaysia and 10 African countries, already owns 49 percent of Nico Life Insurance, which it acquired two years ago.
Last year, SEM said it had a R3.2 billion rand ($322.65 million) war chest for acquisitions in Malaysia or Indonesia and expansion in Africa.
Sanlam is a diversified financial services group established in 1918 and provides financial solutions to institutions and individual clients.