MMI plans R1 billion for Africa acquisitions
MMI Holdings has R1bn to spend on growth opportunities in SA and the rest of Africa, particularly to build scale in existing businesses.
SA’s third-largest insurer has acquired a number of businesses in the past three years to achieve growth and diversify earnings. However, its rest-of-Africa operations are far smaller than rivals Sanlam and Old Mutual.
CEO Nicolas Kruger said MMI would like to build more scale in its rest-of-Africa operations. “But there are not that many opportunities available in Africa because there are so many companies looking, and the businesses are not big and often the prices are very high,” he said yesterday on the release of MMI’s interim results to December.
MMI has a footprint in 12 African countries, including Swaziland, Botswana, Kenya, Tanzania, Nigeria and Ghana.
Mr Kruger said MMI would consider opportunities in those 12 countries, particularly East and West Africa, where it did not have the necessary scale.
The group was also looking for potential acquisitions in SA, possibly to build its short-term insurance business or to grow in the middle market, where it was underrepresented, he said.
During the year MMI set up a joint venture with an Indian financial services group to become the first South African insurer to enter the health insurance market in South Asia.
The joint venture with Aditya Birla Financial Services Group — the financial services arm of Aditya Birla Group — is now in the licensing and pre-implementation phase.
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