”This is really a fantastic asset, it fits very well with the MMI strategy,” Rowan Burger, head of alternative products at Momentum Employee Benefits told CNBC Africa on Monday.
This follows after MMI became the successful bidder from a list of several investors who expressed an interest in acquiring Alexander Forbes’ Guardrisk, an insurance and alternative risk transfer solutions company.
Edward Kieswetter, chief executive of Alexander Forbes stated that the transaction has positioned his company for further growth.
“The sale of Guardrisk was considered in the context of positioning the Alexander Forbes Group for growth in its employee benefits, investment and risk benefits institutional businesses, as well as leveraging off that established client base into three key growth markets: retail (individuals), the public sector and sub-Saharan Africa,” said Kieswetter in a statement.
MMI on the other hand, believes that Guardrisk will become a valuable asset to their portfolio as it will provide their clients with a more holistic employment benefit solution as well as diversify the group’s insurance risks.
“Here is a business that is a niche provider but really world class and enables us to give our corporate clients a more holistic employment benefit solution. It enables us to diversify not only our distribution but also our insurance risks,” Burger explained.
“They are a very innovative bunch of guys. They go out and find new ways to sell insurance which is what excites us and we can assist them by giving them some insurance skills and investment skills which hopefully then creates a better proposition for those corporate clients.”
Herman Schoeman, managing director of Guardrisk stated that he is excited about the group’s future prospects and will continue to the lead the insurance company under his current management team.
“We have been a leader in the specialised insurance industry since our inception and we look forward to unlocking synergies and providing value enhancing products and services to our current and future clients. Our highly experienced employees will also have the opportunity to contribute their unique skill set to MMI,” said Schoeman.
“The culture seems to be fitting and the chemistry seems to be right. The teams will work together to find better solutions for our clients.”