DStv and MultiChoice to sell bulk of insurance business
DStv and MultiChoice have inked a R1.2bn cash deal to sell 60% of its insurance business, NMS Insurance Services, to Africa's largest non-bank financial services group Sanlam.
Fin24 reports that NMS is licensed to underwrite both non-life and life insurance products.
It has been writing insurance for the past 20 years under the DStv brand of MultiChoice focusing on device, installation, funeral, subscription waiver and debt waiver insurance products.
MultiChoice said it wants to collaborate with Sanlam given that firm's extensive presence and expertise across the continent, with the deal including a R1.2bn upfront cash payment, and an earn-out agreement of up to R1.5bn.
The latter is contingent on the financial performance for the year to end 2026.
‘We are pleased to announce the coming together of Sanlam and MultiChoice to enhance insurance access in Africa,’ said Sanlam group CEO Paul Hanratty.
‘It affords us the opportunity to leverage our respective market footprints and technological capabilities that will support growth and market penetration, as well as provide opportunities to realise synergies for the benefit of all stakeholders.’
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