Old Mutual Insure moves to acquire GENRIC Insurance Company

GENRIC’s profitable growth and innovation has caught the eye of one of Africa’s largest insurers. Old Mutual Insure has signed a Share Purchase Agreement that will see Old Mutual Insure acquire 100% of GENRIC Insurance Company Limited. The transaction is subject to regulatory approvals, including Prudential Authority and Competition Commission approvals.

GENRIC’s profitable growth and innovation has caught the eye of one of Africa’s largest insurers. Old Mutual Insure has signed a Share Purchase Agreement that will see Old Mutual Insure acquire 100% of GENRIC Insurance Company Limited. The transaction is subject to regulatory approvals, including Prudential Authority and Competition Commission approvals.

Since commencing operations in 2005, GENRIC has built up an enviable position as a specialist insurer, partnering with Underwriting Management Agencies (UMAs), brokers and insuretech start-ups to bring niche insurance solutions to underserved markets. It is this innovation and agility in finding solutions to rapidly evolving market demands that will see GENRIC remain a standalone Insurer post-acquisition, to continue with the same recipe, but on a larger scale.

“This Transaction brings Old Mutual Insure not only an ability to rapidly test and scale new product ideas but also access to a new customer base in accident and health, medical insurance as well as other niche insurance such as value-added products, cash in transit, equine, marine, travel, taxi, heavy commercial vehicles and shack insurance,” explains Garth Napier Managing Director of Old Mutual Insure.

MC du Toit, CEO of GENRIC Insurance Company adds: “Following a period of exponential growth, we have now reached the next phase in our journey, where the backing of a partner such as Old Mutual Insure brings enormous opportunity for further expansion, and the leverage to take on the niche insurance market at rapid scale to meet evolving market demands. GENRIC will continue to operate under its own insurance license, and nothing changes in terms of our people, operations, business partners, and insurance solutions that we are known for. This partnership strengthens our business, our people, UMA partners, brokers and most fundamentally, our ability to mitigate the most pressing risks faced by our shared customers.”

GENRIC heads into the deal on a strong footing, having enjoyed growth of over 20% in the first half of 2022, and with GCR Ratings (GCR) affirming its national scale financial strength of A-(ZA) with a Positive Outlook – reflecting GENRIC’s improved earnings generation and quality growth over the past three years, strong liquidity and a strengthening in risk adjusted capitalisation.

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