FANews
FANews
RELATED CATEGORIES

Santam acquires insurance administration provider Brolink

29 April 2014 Ian Kirk, Santam
Ian Kirk, Chief Executive Officer of Santam.

Ian Kirk, Chief Executive Officer of Santam.

Santam, South Africa’s largest short-term insurer, today announced that it is to acquire Brolink which provides information technology and business process outsourcing services to the short-term insurance industry.

The transaction will see the Santam group acquire 100% of the issued share capital of Brolink and is subject to approval of the competition authorities. The terms of the transaction were not disclosed.
 
Ian Kirk, Chief Executive Officer of Santam, says the transaction presents exciting opportunities for both Santam and Brolink.
 
"We have successfully worked with Brolink for many years and consider it a very reputable leader in insurance administration. We value Brolink’s efficient business and operations track record, its exceptional people and delivery of quality processes and systems. Strong foundations of this nature are essential in the insurance industry and it is these qualities that attracted us to Brolink.”
 
"As an established industry player, Santam needs to continue improving efficiencies as our sector faces a variety of challenges and regulatory changes. We believe Brolink’s intimate understanding of the requirements of professionals and intermediaries in the outsourced business channel will help Santam to drive further efficiency and growth,” adds Kirk.
 
He says that Santam is looking in particular for the Brolink acquisition to provide greater scale and sustainability in insurance administration activities and to improve operating costs and efficiencies in intermediated distribution channels.
The business will be positioned independent of Santam’s insurance activities as a strategic investment of the group.
 
Established in 1994, Brolink performs insurance administration of personal lines and commercial lines portfolios. Brolink has been awarded the Santam Administrator of the Year award in 2008, 2010, 2011 and 2012.
 
"Looking ahead, insurers face tough business conditions, increasingly rigorous regulatory pressures and possible broker consolidation due to regulatory change. So we see it as in the best interest of Santam to invest in administration service providers in order to ensure effective underwriting management and intermediary operations,” says Kirk.
 
Brolink’s MD, Clipstone Webber says, "Brolink looks forward to continue providing award winning Administration Services, Insurance Software and Management Information to the industry. We have enjoyed strong growth from our existing and new intermediary clients and look forward to the exciting opportunities for expansion and scale that the Santam investment provides. The group’s investment will be structure and operated to guarantee Brolink’s continued independence.”

Quick Polls

QUESTION

How confident are you that insurers treat policyholders fairly, according to the Treating Customers Fairly (TCF) principles?

ANSWER

Very confident, insurers prioritise fair treatment
Somewhat confident, but improvements are needed
Not confident, there are significant issues with fair treatment
fanews magazine
FAnews June 2024 Get the latest issue of FAnews

This month's headlines

Understanding prescription in claims for professional negligence
Climate change… the single biggest risk facing insurers
Insuring the unpredictable: 2024 global election risks
Financial advice crucial as clients’ Life policy premiums rise sharply
Guiding clients through the Two-Pot Retirement System
There is diversification, and true diversification – choose wisely
Decoding the shift in investment patterns
Subscribe now