Santam acquires insurance administration provider Brolink
Santam, South Africa's largest short-term insurer, today announced that it is to acquire Brolink which provides information technology and business process outsourcing services to the short-term insurance industry.
The transaction will see the Santam group acquire 100% of the issued share capital of Brolink and is subject to approval of the competition authorities. The terms of the transaction were not disclosed.
Ian Kirk, Chief Executive Officer of Santam, says the transaction presents exciting opportunities for both Santam and Brolink.
"We have successfully worked with Brolink for many years and consider it a very reputable leader in insurance administration. We value Brolink's efficient business and operations track record, its exceptional people and delivery of quality processes and systems. Strong foundations of this nature are essential in the insurance industry and it is these qualities that attracted us to Brolink."
"As an established industry player, Santam needs to continue improving efficiencies as our sector faces a variety of challenges and regulatory changes. We believe Brolink's intimate understanding of the requirements of professionals and intermediaries in the outsourced business channel will help Santam to drive further efficiency and growth," adds Kirk.
He says that Santam is looking in particular for the Brolink acquisition to provide greater scale and sustainability in insurance administration activities and to improve operating costs and efficiencies in intermediated distribution channels.
The business will be positioned independent of Santam's insurance activities as a strategic investment of the group.
Established in 1994, Brolinkperforms insurance administration of personal lines and commercial lines portfolios. Brolink has been awarded the Santam Administrator of the Year award in 2008, 2010, 2011 and 2012.
"Looking ahead, insurers face tough business conditions, increasingly rigorous regulatory pressures and possible broker consolidation due to regulatory change. So we see it as in the best interest of Santam to invest in administration service providers in order to ensure effective underwriting management and intermediary operations," says Kirk.
Brolink's MD, Clipstone Webber says, "Brolink looks forward to continue providing award winning Administration Services, Insurance Software and Management Information to the industry. We have enjoyed strong growth from our existing and new intermediary clients and look forward to the exciting opportunities for expansion and scale that the Santam investment provides. The group's investment will be structure and operated to guarantee Brolink's continued independence."