Mutual & Federal now owns 100% of the Credit Guarantee Insurance Corporation of Africa Ltd

Raimund Snyders, CEO of Mutual & Federal.

In August last year, Mutual & Federal began the process to acquire Santam’s stake in the Credit Guarantee Insurance Corporation of Africa Ltd (CGIC). At that stage, the company purchased a further 33.6% interest in CGIC, leading to a 86.1% shareholding in the business. Subsequent to this transaction that was concluded in October 2015, Mutual & Federal made an offer to the remaining minorities, the IDC and Munich Re, to acquire their shares in CGIC.

Mutual & Federal is happy to announce that the Financial Services Board has provided their approval for this transaction, resulting in the acquisition of 100% of the issued shares in CGIC.

According to Raimund Snyders, CEO of Mutual & Federal, CGIC is the market leader in trade credit insurance in South Africa and this transaction confirms CGIC as a core asset within the Old Mutual Emerging Markets (OMEM) portfolio of property and casualty business. Trade credit insurance is well developed in South Africa, so this transaction is an opportunity to drive further expansion on the African continent. The CGIC management team remains the trade credit insurance experts within the OMEM group and will continue to manage the business, in line with their board-approved mandates.

CGIC will benefit from the OMEM group, in areas such as capital management, balance sheet optimisation, reinsurance and other corporate procurement.

Snyders concluded: “CGIC has already made a significant contribution to Mutual & Federal’s 2015 result. We look forward to its continued strong performance, as we work together to build a leading insurance business, both in South Africa and outside our borders.”