Alexander Forbes Group Holdings currently on the lookout for companies to purchase in order to expand its employee-benefits offering. After finalizing plans to quit its insurance branch, Alexander Forbes Group Holdings is looking for companies to purchase in order to expand its employee-benefits portfolio.
Alexander Forbes Group Holdings, also known as Alexander Forbes, is based in Johannesburg, South Africa, and has operations in six additional African countries: Namibia, Botswana, Zambia, Uganda, Nigeria, and Zimbabwe, as well as in the Channel Islands through an offshore Jersey business. Alexander Forbes is listed on the Johannesburg Stock Exchange (JSE) and its clients span both the private and public sector market segments on the institutional side, and individual members, as well as the wider individual market, on the retail side.
The South African retirement and investment adviser is increasing its excess capital and selling its risk and retail business operations to Sanlam Ltd, which generated insurance premium income of R1 billion ($72.7 million) at the end of March.
Following disposals in Uganda and Zambia, the R100 million transaction brings to a close a strategy of discontinuing capital-intensive businesses, allowing the firm to focus on growing scale in its priority regions.
“It’s about new business and about more acquisitions as the market consolidates,” Chief Executive Officer Dawie de Villiers said in an interview on Monday. As a result of “Covid, we are seeing much more engagement with players that were not at the table in the past.”
As South Africa’s economy is expected to recover by 4.2 percent this year, the business intends to expand in administration and consultancy while also increasing its assets under management. Moves by the government to combat corruption and make progress in addressing issues at state-owned enterprises are among the factors boosting the firm’s confidence in its home market, according to De Villiers.
“In our engagement with corporates we don’t see any of them planning large-scale retrenchments,” De Villiers said. “It’s very positive for South Africa.”
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