Zurich Insurance Company South Africa to be acquired by Fairfax Financial

Zurich has announced today the acquisition of its operations in South Africa and Botswana by Fairfax Financial Holdings Limited (“Fairfax”), a holding company based in Toronto, Canada, which through its subsidiaries is engaged in property and casualty insurance and reinsurance and investment management. The sale is subject to regulatory and competition commission approval.

At the Group’s Investor Day in May 2015, Zurich stated that reshaping its geographic footprint would be one of its highest priorities over the next two years as it seeks to build a more sustainable business while also improving overall profitability. Whilst South Africa and Botswana remain attractive markets, a comprehensive assessment found that there was limited scope for Zurich to achieve an operating scale that warranted continued investment. 

“The acquisition is the ideal outcome for our customers, our employees, the Group and the insurance markets in South Africa and Botswana”, commented Edwyn O’Neill, CEO of Zurich’s business in South Africa. “With its extensive experience in the insurance industry globally, Fairfax is well positioned to take ownership of our organisation and I believe we will benefit immensely from the relationship. Selecting Fairfax as our acquirer allows us to continue to run the business with a strong local focus, while enjoying the backing and guidance of a global sector expert.”

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