{"id":777413,"date":"2024-06-18T09:01:04","date_gmt":"2024-06-18T07:01:04","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=777413"},"modified":"2024-06-18T09:01:10","modified_gmt":"2024-06-18T07:01:10","slug":"multichoice-selling-majority-stake-in-its-big-moneymaker-for-up-to-r2-7-billion","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/technology\/777413\/multichoice-selling-majority-stake-in-its-big-moneymaker-for-up-to-r2-7-billion\/","title":{"rendered":"Multichoice selling majority stake in its big moneymaker &#8211; for up to R2.7 billion"},"content":{"rendered":"\n<p>Sanlam plans to buy a 60% stake in MultiChoice\u2019s insurance business, NMS Insurance Services Limited (NMSIS), for R1.2 billion, which could rise to R2.7 billion. <\/p>\n\n\n\n<p>For the financial year ended 31 March 2024 (FY24), NMSIS increased its in-force policies by 19% to 3.3 million. <\/p>\n\n\n\n<p>Life products were introduced three years ago and have experienced substantial growth, accounting for 30% of in-force policies.<\/p>\n\n\n\n<p>NMSIS&#8217;s profit after tax in FY24 increased by 51% to R296 million, while its net asset value was R277 million. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"vKYhbFiCtL\"><a href=\"https:\/\/businesstech.co.za\/news\/business\/776356\/the-big-moneymaker-in-south-africa-with-capitec-joining-the-trend\/\">The big moneymaker in South Africa &#8211; with Capitec joining the trend<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;The big moneymaker in South Africa &#8211; with Capitec joining the trend&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/business\/776356\/the-big-moneymaker-in-south-africa-with-capitec-joining-the-trend\/embed\/#?secret=oFlyGqCUhK#?secret=vKYhbFiCtL\" data-secret=\"vKYhbFiCtL\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Sanlam, South Africa&#8217;s largest insurer, believes that the transaction, through its Fintech cluster, will allow it to advance its technology strategy to expand access to financial services across Africa.<\/p>\n\n\n\n<p>&#8220;MultiChoice&#8217;s extensive subscriber base offers Sanlam and its affiliates a unique platform and attractive opportunity for cross-selling and cost-effective marketing to an actively engaged subscriber base.&#8221; <\/p>\n\n\n\n<p>MultiChoice, on the other hand, gains access to insurance expertise, comprehensive financial services resources and Sanlam\u2019s financial services operations across Africa to address its customer&#8217;s needs<\/p>\n\n\n\n<p>MultiChoice will still retain a 40% interest in NMSIS and a 40% interest in the broader commercial venture with Sanlam, allowing it to benefit from the segment&#8217;s high-growth potential. <\/p>\n\n\n\n<p>In terms of the sale, MultiChoice will receive an upfront payment of R1.2 billion for the 60% stake.<\/p>\n\n\n\n<p>There is also a potential earn-out payment of up to R1.5 billion for MultiChoice\u2019s 60% interest sold to Sanlam Life, contingent upon the total gross written premium generated by NMSIS for the year ending 31 December 2026.<\/p>\n\n\n\n<p>NMSIS will also declare a pre-acquisition dividend of R59 million for assets held in excess of the minimum solvency capital requirement as of FY24. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"TMeZIzSgZW\"><a href=\"https:\/\/businesstech.co.za\/news\/media\/776682\/bad-to-worse-for-multichoice\/\">Bad to worse for Multichoice<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Bad to worse for Multichoice&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/media\/776682\/bad-to-worse-for-multichoice\/embed\/#?secret=0mUhNoaqpM#?secret=TMeZIzSgZW\" data-secret=\"TMeZIzSgZW\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/energy\/776879\/the-special-tax-that-could-cut-petrol-prices-to-under-r15-a-litre-in-south-africa\/\">The \u2018special tax\u2019 that could cut petrol prices to under R15 a litre in South Africa<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Insurance is a big money maker in South Africa, with Sanlam and MultiChoice seeing it as beneficial to team up. <\/p>\n","protected":false},"author":95,"featured_media":747504,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9878],"tags":[26,1253,2880],"class_list":["post-777413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-headline","tag-multichoice","tag-sanlam"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/777413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=777413"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/777413\/revisions"}],"predecessor-version":[{"id":777430,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/777413\/revisions\/777430"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/747504"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=777413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=777413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=777413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}