Sanlam : Acquires 60 Percent of NMS Insurance Services

NMSIS, a registered South African composite micro-insurer and authorised financial services provider, is licensed to underwrite both non-life and life insurance products. It has been writing insurance for the past 20 years under the DStv brand of MultiChoice focusing on device, installation, funeral, subscription waiver and debt waiver insurance products.

The business has demonstrated robust growth in recent years, increasing its in-force policies by 19% to 3.3 million for the financial year ended 31 March 2024. The Life products, introduced three years ago as NMSIS diversified beyond device insurance, experienced rapid growth and now account for 30% of in-force policies.

NMSIS's key financials for the year ended 31 March 2024, audited and prepared in terms of IFRS, were as follows:

• GWP increased 36% year-on-year to R970 million
• Profit after tax increased 51% to R296 million
• The net asset value of NMSIS was R277 million

NMSIS has enjoyed substantial traction and profitability in South Africa, as shown by these numbers. Its growth ambitions, such as expanding its local product offering and geographic presence across Africa, require a step up in resources, expertise and technology, which the acquisition by Sanlam will help unlock.

Sanlam will oversee the NMSIS operations through its Sanlam Fintech cluster, ensuring seamless integration into the Sanlam Group and positioning NMSIS to meet its growth objectives.

The transaction is subject to the necessary regulatory approvals from the South African competition and regulatory authorities.