RH Bophelo has sold its 30% stake in Genric to Old Mutual Insurance for a cash consideration of approx. USD 5.2mn (ZAR 90mn). Other shareholders, which own the remaining 70%, have also agreed to sell their respective shares in the insurance company.
The deal is subject to regulatory approval.
This brings the total value of the company to approx. ZAR 300mn. Its net asset value for the year ended 30 June 2022 was ZAR 188.1mn and its profit after tax was ZAR 27.8mn.
OMI completed the deal through its subsidiary RH Financial Services, which alongside Genric (40%), owns Westmart Financial and Administration Solutions, an underwriting management agency that focuses on medical insurance products. The transaction brings RHFS closer to an underwriter with increased capacity to address the growing health insurance market. It also adds a new customer segment to OMI’s current base in accident, health and medical insurance.
Genric is a licenced non-life insurer that partners with and holds ordinary equity interests in a number of underwriting management agencies, startups and insurtechs.
Update – the deal was approved by the competition commission on the 25th of November 2022.