ALEXANDER Forbes Namibia has agreed to sell its insurance business for N$50 million, subject to approval by the authorities.
The intended buyer is Momentum Short Term Insurance Namibia, a subsidiary of the Momentum Metropolitan Group. In an announcement last week on the Namibian Stock Exchange, Alexander Forbes Insurance Namibia will sell a 100% stake, including the trademarks specific to the business.
The sale will be funded from existing resources of Momentum Metropolitan Namibia. Alexander Forbes Insurance Namibia recorded an after tax profit of N$2,6 million and was carried as a discontinued operation at a 31 March 2019 consolidation. According to the announcement, the net asset value of the insurance business to be sold, was an intangible N$56 million.
The rationale for the proposed transaction follows the July 2019 Momentum Metropolitan announcement of the acquisition of the Alexander Forbes short-term insurance business in South Africa through Momentum Metropolitan Strategic Investments Proprietary Limited.
“Following the initial transaction the group has concluded that further commercial synergies for the Group and MSTI Namibia can be achieved through the acquisition of AFI Namibia,” read the announcement.
The deal still awaits approval from the Namibia Competition Commission as well as Namibia Financial Institutions Supervisory Authority as the regulator of the insurance sector in Namibia.
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