MMI Holdings Namibia has pumped N$8,5 million into Quanta Insurance for its capitalisation after acquiring 70% of the insurance company.
Quanta Insurance will now be known as Momentum Short-term Insurance, a service MMI Holdings Namibia recently decided to venture into. Talks over acquiring Quanta Insurance kicked off in 2017, and all the necessary approvals were finalised in October 2017.
The launch of Momentum Short-term Insurance will be done in February, and thereafter Quanta insurance will no longer exist.
Speaking at the briefing yesterday, MMI Holdings Group chief executive officer Jason Nandago reiterated that MMI Holdings invested the N$8,5 million to capitalise the business, while the transaction is structured over a three-year period.
“Momentum Short-term Insurance has some hurdles they would need to clear, but it is doable,” he stated.
Johan Barnard, the Momentum Short-term Insurance managing director, said the terms of the Momentum insurance transactions are that MMI will invest in the company, and then have a three-year period to reach specific targets.
“Unfortunately, I may not provide you that detail because it depends on actuarial evaluations, which would determine how much would be paid for the company. The total transaction value would probably not be more than N$20 million over the three- year period,” he added.
Quanta Holdings, which owned 100% of Quanta Insurance, will still be around. If the company wants to venture into other financial aspects, it can do so, but the insurance portfolio would be gone.
Barnard said as Momentum Short-term Insurance, they will continue to support the broker model, and not use the direct model.
“MMI got the approvals from the Competition Commission and Namfisa, and acquired 70% of the issued share capital in Quanta. Before that, MMI did not have any local representation in short-term insurance, and it will thus be a totally new industry to venture in.
“The name of Quanta will now change to Momentum Short-term Insurance, forming part of that brand,” he noted.
Barnard added that they are excited to fall under the Momentum brand, seeing that it comes a long way within southern Africa, and has exciting products.
Quanta is a local insurance start-up founded in 2015 by insurance experts Justus Hausiku, Johan Barnard and Riana Botes.
Barnard stressed that the company was birthed through the trio having local solutions to local problems, and started out with local funding. However, when MMI wanted to enter the short-term insurance market, a meeting was arranged, and it was decided to go into business together.
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