Momentum Short Term takes another bite at market share – makes binding offer for Alexander Forbes Insurance
Momentum Short Term Insurance has taken another step to consolidate the limited short-term space in Namibia by making a bid to take over Alexander Forbes Insurance Namibia. This deal is still subject to regulatory approval by both the Competition Commission and the Namibia Financial Institutions Supervisory Authority.
The local deal follows a similar deal in South Africa where Momentum’s parent company took over Alexander Forbes’ short term business. In Namibia, it is another strategic move in Momentum’s quest to establish itself as one of the leading short term insurance underwriters.
In its first major strategic move, Momentum took over Quanta Insurance in 2018, then under the leadership of Johan Barnard. The latter came with the deal and has been the Managing Director of Momentum Short Term Insurance Namibia since.
Commenting on the deal, Barnard said “This transaction is an excellent strategic fit for Momentum Short Term Insurance. We are on a path of strong growth and expansion. As the two entities integrate, our focus will be on continuing to deliver the same level of excellent service and competitive solutions that clients have come to rely on.”
“We have a shared understanding of the value proposition presented and we look forward to showing enhanced capability and seamless efficiency. We are confident with what we have to offer and look forward to offering a warm Momentum welcome to our new clients and employees. As a business we will remain committed to continuously improve and evolvr,” he continued.
Alexander Forbes Insurance Namibia is a personal and commercial lines insurance provider with a business model that focuses on a personalised approach to sales and service with niche offerings. It is the fourth largest insurance provider measured by market share in gross written premium.
Alexander Forbes Chief Executive, Dawie de Villiers said “We are pleased with the proposed transaction which brings to a close the sale of all our short-term insurances businesses. In selecting Momentum Short Term Insurance (Namibia) Limited, we are ensuring our clients will continue to experience the superior benefits and service excellence they have at Alexander Forbes. Momentum is a company that understands the value proposition we have provided to our clients and our employees and they will continue to invest in enhancing it.”
The Momentum Metropolitan Group Chief Executive, Grant Marais said “We share the same values and culture and have been very impressed with the existing team in their understanding of the local market and the innovative solutions they are offering.”
“[The acquisition] also gives us access to a unique set of insurance skills and many years’ experience we can benefit from as a group in Namibia. We have already identified significant synergies and will maximise opportunities, which we believe will result in increased revenue to the benefit of stakeholders and the economy at large,” Marais stated.
Caption: Group Chief Executive of Momentum Metropolitan, Grant Marais.