Iain Williamson-led Old Mutual looks set to acquire South African insurer, Genric

Old Mutual Limited, a pan-African investment group based in South Africa and led by Cape Town-based executive Iain Williamson, has entered into an agreement to acquire a 100-percent stake in Genric Insurance Company Limited for an undisclosed fee.

Genric Insurance is a non-life insurance company based in Gauteng.

The acquisition, which will be implemented through one of Old Mutual’s operating subsidiaries, Old Mutual Insure, will be critical in diversifying the company’s earnings and extending its customer base in the accident, health, medical, and other specialized insurance markets.

According to Moneyweb, the announcement comes nearly two weeks after competition authorities raided Old Mutual Insure offices on suspicion that it was engaging in collusive practices to fix prices and/or trading conditions for life insurance and other investment products, alongside eight other major life insurers.

The deal is still subject to regulatory approval, as well as approval from the Prudential Authority and Competition Commission.

Despite the announcement, Old Mutual shares remained unchanged at R1,600 ($93.29) as investors on the Johannesburg Stock Exchange began to examine entry positions in the group’s shares, which had dropped by more than 19 percent since the start of the year.

Garth Napier, managing director of Old Mutual Insure, said the transaction moves the insurance company closer to its goal of strengthening its customer base.

“This deal brings us closer to our goal of customer-centricity, as we will be able to access a wider range of valued-added products and innovative offerings,” Napier said. “It will also give us access to new insurance markets with low-cost products that can contribute meaningfully to our transformation strategy.”

As a specialist insurer, Genric Insurance has grown by partnering with underwriting management agencies, startups, insurance-tech companies, and brokers.