“It’s probably correct to say that we’ll be the number two short-term insurer by market size. Hollard created Etana some six years ago. At the time, it was felt that there was a big need and opportunity to support the BEE movement,” Hollard Broker Markets managing director Paolo Cavalieri told CNBC Africa.
“As a result of this transaction, we’ve seen a lot of growth at Etana and I think that for our BEE shareholders in particular, it’s been a really good investment for them.”
Hollard Insurance is South Africa’s largest privately-owned insurance group that provides personal and business related insurance, as well as a range of specialist insurance products.
The transaction, which is valued at a billion rand for a 100 per cent stake in Etana, is expected to see the combined entity become a major player in the country’s insurance space.
Cavalieri added that Hollard had identified the need to give a positive message of confidence and support to the broker community.
Etana has a progressive positioning in the market, and Cavalieri added that Hollard felt that it was important to bring that investment back into the fold and give a positive measure to the insurance community.
“There’s a lot of synergy between the two brands. Hollard stands for innovation, it’s a people business, as has been Etana. Very strong on partnerships, very strong on building relationships, so we’re going to put all our weight behind the Hollard brand,” Cavalieri explained.
“It makes no sense, it’s the most established brand, and it’s better known of the two, been around for 30 years and it’s an international brand today as well.”
Hollard operates in 10 countries around the world, is within four continents and insures more than six million South Africans either personally or in business. Some of its client regions include Australia, China, India, Botswana, Namibia and Zambia.
“We’re taking two very successful teams and two very successful skillsets and combining them. The strength of that and the depth is important. The transaction is mainly aimed at consumers who buy through brokers. This is a very positive message of confidence and support to the broker community,” said Cavalieri.
“If you consider the changes that are happening in our country, - the challenges that we have in business today, weather patterns over the last couple of years, storms, floods, hailstorms-there isn’t a better time and a more important time today for the insurance-buying consumer.”