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Hollard Insurance completes Regent Insurance acquisition

IBR Staff Writer Published 29 June 2017

South Africa-based Hollard Insurance Group has completed its R1.8bn ($140m) acquisition of Regent Insurance Group from Imperial Holdings.

Regent’s business features insurance operations and investments in South Africa, Botswana, Lesotho and Zambia.

Hollard expects the merger of Regent to consolidate its position of being the second-largest short-term insurer in South Africa. It will also boost Hollard as the largest independent insurance group in the country.

The combined entity will have a workforce of over 3,600 people and an annual income in excess of R20bn ($1.55bn).

Hollard Insurance Group CEO Nic Kohler said: “Acquiring Regent is an important milestone for Hollard, given our objectives of increasing our African footprint and building scale in our South African business.

“The deal expands our life distribution capability and significantly enhances our presence and capability in the commercial vehicle space.”

Following approvals from the South African Competition Tribunal and the Financial Services Board in South Africa, the transaction which was first announced in September 2015 was finally closed.

According to Hollard Insurance, the closing of the South African part of the transaction follows its acquisition of the non-South African interests of Regent in Botswana, Zambia and Lesotho in January for a price of R697m ($54m).

Owing to a long competition authority approval process, the deal was restructured to omit Motor Value Added Products and Services business of Regent which will continue to operate under the Imperial Group.

As per the original transaction, Hollard Insurance was to offer a price of around R2.3bn ($180m) with some of Regent’s motor-related businesses to be divested to the Hollard/FirstRand motor Value-Added insurance Products (VAPS) joint venture.

Image: Hollard closed its acquisition of Regent Insurance. Photo: courtesy of adamr/ FreeDigitalPhotos.net.