SOUTH AFRICA – Santam, South Africa’s largest short-term insurer, has announced that it has increased its stake in Mirabilis Engineering Underwriting Managers by acquiring the remaining 45 percent shareholding for an undisclosed amount.

Santam, which already owns the other 55 percent stake in Mirabilis, said the acquisition was still subject to the fulfilment of regulatory conditions before it becomes effective.

Mirabilis will now become a wholly owned subsidiary of Santam after the acquisition, but it will continue to operate as an independent underwriting management business.

Quinten Matthew, the executive head of the Santam Specialist Business, said Santam was excited by the opportunities that this transaction brought to both Santam and Mirabilis.

“The transaction will strengthen Mirabilis’ already excellent capability and service offering to the engineering sector in South Africa. Furthermore, it will provide Mirabilis with a significant strategic advantage by leveraging off Santam’s footprint across Africa and in selected international markets,” Matthew said.

“The transaction will strengthen Mirabilis’ already excellent capability and service offering to the engineering sector in South Africa and provide Mirabilis with a significant strategic advantage by leveraging off Santam’s footprint across Africa and in selected international markets”

Quinten Matthew – Executive Head of Santam Specialist Business

Santam has business interests outside of South Africa in countries such as Malawi, Tanzania, Uganda, Zimbabwe, Zambia, India, and the Middle East.

Mirabilis, the leading engineering underwriting manager in South Africa, was founded in 2006 by Russell Myers, an engineer who is expected to retire at the end of June 2021 with Curt Meyer has assuming the chief executive role in the company.

Santam said Mirabilis would continue to operate as an independent underwriting management business committed to providing the client and intermediary with the very best service and solutions backed by Santam’s reputation and financial strength.

Santam has been active on the acquisitions front recently and in 2017 it acquired 100 percent of RMB-SI Investments, a structured insurance business previously owned by Rand Merchant Investment Holdings, with the acquisition expected to provide Santam with access to new clients and markets that will enhance the group’s innovation and solutions mindset.

Two years later, Santam also acquired Vantage Insurance Acceptances, an Underwriting Manager (UMA) with specialist underwriting skills and claims management of executive and classic cars.

Vantage started operations as a registered Financial Services Provider (FSP) and UMA in 2009, and distribution is done through a network of independent brokers.

The acquisition of Mirabilis comes after Santam reported a 47 percent decline in earnings for the year to end December, hurt by contingent business interruption (CBI) claims due to the Covid-19 outbreak in its operations. However, the group still managed to report a 5 percent growth in conventional insurance gross written premiums to US$2.09 billion during the year despite the severely constrained economic climate.

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