PSG Konsult acquires Diagonal Insurance

PSG Konsult, the independent financial services company, has announced the acquisition of the short-term insurance brokerage and administration platform, Diagonal Insurance. The transaction is effective from 1September 2010.

Diagonal Insurance is a well established short term insurance brokerage, with former Springbok rugby player Ockie Oosthuizen and his family as shareholders, who will be leaving the industry to pursue their own interests.

Diagonal Insurance has offices in Randburg, Pretoria, Durban, Secunda and the Western Cape. Short-term insurance and administration services are offered to some 12000 clients with premium income amounting to R175 million per year.

PSG Konsult CEO, Willem Theron, said the transaction will be financed through own funds and loans. After interest, the acquisition will contribute roughly 5% to PSG Konsult’s headline earnings and headline earnings per share. The transaction will see short-term insurance premiums collected by PSG Konsult on behalf of insurers increase to R1,6 billion per year.

“While the five offices of Diagonal Insurance will be integrated into the country-wide PSG Konsult network, it is envisaged that the company’s administration platform will be incorporated into PSG Konsult’s administration platform, Topexec. The acquisition will see the number of offices under the PSG Konsult banner increase to 219.

“The transaction especially strengthens the footprint of PSG Konsult in KZN, while the company’s short-term insurance activities are supplemented with additional services such as financial planning, stock broking, local and international investments and trust services. The clients at these five new offices therefore gain access to a wide range of PSG Konsult services,” Theron said.

Oosthuizen said that it is expected that the integration of Diagonal Insurance into the PSG Konsult culture would be an easy one. “We specifically sought someone who would take care of our clients in the same manner as Diagonal has done over the years. We found this quality in PSG Konsult.”