Hollard and Etana acquisition a step closer
26 September 2013 | Company News & Results | Hollard | Nic Kohler, Hollard
The Hollard Group, South Africa’s largest privately-owned insurance group, today confirmed that the Competition Tribunal has given its approval for the company to acquire the business and remaining 60% shareholding interests in Etana Insurance.
Etana is a leading provider of broker-driven corporate, commercial and personal lines insurance products and has enjoyed tremendous market success and broker acclaim since being spun out of Hollard in 2007. The Hollard Group currently has a 40% shareholding in Etana.The merged group will become the second largest short-term insurance group in South Africa by revenue, with premium income of over R10.6 billion in the year to end 30 June 2012. The entity employs over 1700 people in South Africa, including those housed at Etana branches and Hollard offices, all of which will remain in service.
"We are delighted the Competition Tribunal has given its approval,” says Nic Kohler, Hollard Group CEO. "This takes us one step closer to concluding an important transaction in a fiercely competitive insurance market. We can now start implementing our carefully considered plans for integrating the two businesses. We are particularly pleased that the integration will not entail any job losses – this was an important consideration in the transaction.”
The next step is approval from the Financial Services Board. It is expected the two businesses will merge in the first quarter of 2014.
"We will continue to keep our key stakeholders informed on the process. In October we will be taking to the road to discuss the transaction with our broker community,” adds Kohler. "We strongly believe that by joining forces we will be able to enhance innovation, thereby offering market leading solutions and risk management practices to our brokers and ultimately for the benefit of our mutual clients.”
