In a second transaction with the JSE listed group, PSG Konsult Limited (PSG), Absa Insurance and Financial Advisors Proprietary Limited (AIFA) signed a deal to sell its face-to-face Personal Lines short-term insurance brokerage to PSG. The transaction remains subject to regulatory approvals.
PSG has a leading insurance brokerage in South Africa and is recognised for offering strong specialist skills through its more than 200 offices countrywide.
The sale of the Personal Lines (face-to-face) insurance brokerage business is part of the Barclays Africa Group’s decision to optimise its insurance distribution channels to respond effectively and efficiently to changing market conditions, technological advancements and increasing competition. In the first transaction, announced in September last year, PSG acquired AIFA’s Commercial and Industrial Lines short-term insurance brokerage business.
“Due to the prohibitively high investment required for the short-term face-to-face advisory business model and difficulties with scaling it up, we have taken a strategic decision to re-align ourselves as a bancassurer with a particular focus on direct distribution channels for short-term products,” says Bongiwe Gangeni, Managing Executive for Distribution at Absa Wealth, Investment Management and Insurance.
The transaction does not extend to the Life and Investment Insurance brokerage and other insurance-related businesses such as, idirect, Absa Insurance Company or Absa Life Insurance.
The impact of the sale is expected to be minimal to both the advisors and clients as existing advisor relationships with their clients will continue. The transaction will have no impact on the clients’ current insurance product/s or on their broader relationships across the Barclays Africa Group.
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Absa Media Relations
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072 576 1999
Absa Bank Limited (‘Absa Bank’) is a wholly-owned subsidiary of Barclays Africa Group Limited, which is listed on the Johannesburg Stock Exchange and is one of Africa’s largest financial services groups. Absa offers a range of retail, business, corporate and investment banking and wealth management products and services primarily in South Africa and Namibia.
Barclays Africa Group operates in 12 countries, with approximately 40 000 employees, serving close to 12 million customers. As of June 2017, Barclays PLC is a minority shareholder in Barclays Africa Group.
We are committed to Shared Growth, which for us means having a positive impact on society and delivering shareholder value.
For further information about Absa, please visit our website www.absa.co.za