Patrice Motsepe’s ARC to launch insurance company with Sanlam

Patrice Motespe’s African Rainbow Capital (ARC) has announced that it will be entering the insurance market through a new subsidiary – African Rainbow Life.

ARC said that African Rainbow Life will be primarily focused on long-term insurance products – including life cover, savings, investments, retirement annuities and funeral cover.

The company will be headed up by Bongani Madikiza, who has previously held roles as CEO of Lion of Africa Insurance and as MD of the Mass Market Cluster and Corporate businesses at Old Mutual South Africa.

“Our customers are typically low to middle-income earners who historically have had little access to sound financial advice or cost-effective financial services products around which they can effectively plan for their financial futures,” said Madikiza.

“Our app ensures every customer completes a financial needs analysis ensuring consideration and discernment when making a financial decision,” he said.

The company – which is 100% black managed – is owned by Sanlam Life Insurance Limited (51%), ARC Financial Services (26%) and Siyakhula Consortium (23%) , a management consortium that includes a staff, community and management trust.

“As a key shareholder in African Rainbow Life we have full confidence in the management team to offer clients something unique,” said Dr Johan van Zyl, co-CEO of ARC.

“Given the management team’s extensive experience in this segment of the market, we expect African Rainbow Life to develop into a formidable contender in this market segment.”

He added that African Rainbow Life trades under the ARC brand and is a key development for the company as its first foray into the retail space.

Up to now, the ARC brand has solely been used in the institutional space, he said.

“As an empowerment investment holding company, we primarily conduct business on a B2B basis. With the launch of African Rainbow Life, consumers will now have their first direct experience with our brand.

“We trust that consumers’ experience will be characterised as one of responsible businesses practices as well as excitement as we aim to positively impact the lives of many people.”

Read: These are the most complained about insurance companies in South Africa

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Patrice Motsepe’s ARC to launch insurance company with Sanlam