Sanlam BEE deal funds Patrice Motsepe’s new life insurance company
African Rainbow Life will be SA’s second black-managed life insurance company, created by a Sanlam and Ubuntu-Botho partnership
Patrice Motsepe’s African Rainbow Capital (ARC) is set to launch SA’s second black-managed life insurance company following an empowerment deal struck with Sanlam on Wednesday. Sanlam, which has partnered with his Ubuntu-Botho (UB) company and a number of black groups to increase its black ownership to 18%, said it will provide R2bn to UB. The money will be used by UB subsidiary ARC to form a new insurance company, African Rainbow Life. The new insurer will focus on the lower- to middle-income markets as well as small- and medium-sized enterprises (SMEs). It will compete with entry-level market players, such as Metropolitan and Hollard, and will be the second mainstream insurer to have a black management team after Hollard. “We’ve said we need to lift our position in the entry-level life [insurance market] and African Rainbow Life will help our position in that market,” said Sanlam CEO, Ian Kirk. Sanlam will hold a 51% stake in the new insurer and ARC will own the remaining 49%. The...
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