Old Mutual Insure (OM Insure) has acquired a 51% stake in ONE Financial Services, a South African short-term insurance service provider, for R500 million.
“This transaction supports our strategic ambitions of growing our business, strengthening our distribution capabilities and non-insurance revenue streams,” said Garth Napier, MD of OM Insure.
While ONE Financial Services has been operating as an underwriting management agency for Mutual & Federal Risk Financing Limited (MFRF) – wholly owned by OM Insure – for some time already, ONE Financial Services has, since, 1996, grown into a group of companies offering a wide range of niche and traditional insurance solutions and services.
“Working with ONE Financial Services has enabled MFRF to provide world-class cell captive solutions to affinity businesses and underwriting managing agents including innovative start–ups, InsurTech and Fintech companies. Its suite of offerings include an integrated cloud-based technology system called 1Web, and we are excited that this transaction allows us access to this industry-leading technology platform,” said Karen Naidoo, MD at MFRF.
She said that the platform will allow the business to “deliver more agile onboarding and servicing capabilities while empowering OM Insure’s partner network – ranging from intermediaries to other underwriting management agencies – with quicker turnaround times and greater ability to manage policies and serve clients.”
“In short, this acquisition will equip OM Insure to offer new products to clients, consumers and brokers through product, service and system innovation. At the same time, OM Insure, as South Africa’s third largest non-life insurer, will enrich the ONE Financial Services platform with a wealth of industry and institutional knowledge founded on over 187 years of insurance experience,” said Napier.