JOHANNESBURG - Financial services group Momentum Metropolitan on Thursday entered into an agreement to acquire the Alexander Forbes short-term insurance (AFI) business for a total purchase consideration for R1.94 billion.
Momentum Metropolitan was formed from the merger of Metropolitan and Momentum, sizable insurance-based financial services companies in South Africa and listed on the Johannesburg Stock Exchange on 1 December 2010.
With a market capitalisation of R28 billion and an embedded value of R39.6 billion, Momentum Metropolitan conducts its business through operating brands Metropolitan, Momentum, Guardrisk and Eris Properties.
The group said it has identified short-term insurance as an industry segment into which the group will invest capital to support its growth aspirations.
It said this transaction accelerates and broadens the sustainable growth plans for this market segment.