ABSA has invested R100m for a 75% stake in direct life insurer Instant Life as part of the bank’s plan to grow its bancassurance division.
Instant Life, an online life insurance distribution platform, has an average 14,000 policies with the average sum insured of about R700,000 per policy, Absa Life MD Jannie Venter said.
The seven-year-old insurer offers life, disability and critical illness insurance.
Mr Venter said the business had an annual premium income of about R50m and an embedded value of just over R70m.
“By leveraging Instant Life’s existing digital platform, customers will have access to a self-service function that will allow them to acquire insurance and easily update and manage their policies online,” Mr Venter said.
Mr Venter said Instant Life and Absa’s current life business would be run as separate entities.
“We are confident that the Absa and Barclays culture and brand fits well with what has driven Instant Life for the past eight years across our business model and we foresee it increasing both our customer base and our offering through significant opportunities going forward,” Instant Life said.
Earlier in the year Absa owner Barclays Africa Group acquired a 63.3% stake in Kenyan insurer First Assurance for about R374m. Source: BD Live