JSE-listed life insurance firm, Clientèle, is set to acquire 1Life Insurance Limited from Telesure Investment Holdings (TIH) in a share exchange deal valued at R1.91 billion. As part of the agreement, Clientèle will forfeit 26% of its issued share capital and allow TIH to elect two members to its board following the deal's expected conclusion on June 30, 2024.
The merger will result in a larger entity with an estimated value of around R7.8 billion and 1.5 million active policies. Despite the merger, both firms will retain their individual brands and leverage their collective industry experience to provide an expanded range of insurance and investment solutions.
The integration aims to enhance operational efficiencies, cost-effectiveness, and customer service capabilities. The merged entity plans to utilize their unique customer bases for cross-selling opportunities while preserving the identity of both brands.
Basil Reekie, Group MD of Clientèle, emphasized that the merger will integrate trusted services, specialized offerings, and industry expertise to offer a broader range of value-adding insurance and life-enhancing investment solutions. The merger also intends to employ complementary distribution channels for market expansion.
The decision for the merger was influenced by the successful collaboration between the two firms on the 1Life rewards program and the compatibility of their organizational cultures. The merger promises synergies, growth opportunities, innovative insurance products, enhanced rewards for clients, as well as benefits for employees and shareholders.
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