Alexander Forbes acquires stake in Zim insurance firm
ALEXANDER Forbes Group Holdings has acquired a significant stake in African Actuarial Consultants, one of the largest independent actuarial consultancies based in Zimbabwe with a growing presence in the region. The Johannesburg Stock Exchange listed insurer said that the acquisition was subject to regulatory approval by authorities in Zimbabwe.
Alexander Forbes is a specialized financial services group with its head office in Sandton, South Africa and business interests in Africa, Europe and the Middle East.
Established in 1935, the group was listed on the JSE in 2014 and has average annual revenue of over 4 billion rand.
The acquisition of AAC was in line with the Alexander Forbes’ growth strategy to expand into selected markets in sub-Saharan Africa under the Emerging Markets Division, which already has market leading businesses in Africa including Botswana, Namibia, Uganda and Nigeria.
Acquisition of AAC adds scale to Alexander Forbes’ Consultants and Actuaries business line and further enhances the firm’s existing talent and client base.
AAC, which started operating in 1993, offers end-to-end actuarial and advisory services to leading insurers, reinsurers and large pension schemes in Zimbabwe as well as compensation and medical schemes.
The company also has regional clients and a staff complement of 25 people.
AAC was formed as the actuarial division of First Mutual Holdings. In 2003 the company was registered as a subsidiary of First Mutual and began offering actuarial and consultancy services outside of First Mutual.
In 2015, AAC was acquired by Tinashe Mashoko, who has extensive experience across all aspects of actuarial and consultancy services in Africa and Europe.
Mr Mashoko has held various leadership and board positions in leading multi-national financial institutions such as Old Mutual, PwC and Alexander Forbes.
Andrew Darfoor, group chief executive of Alexander Forbes, said AAC gives Alexander Forbes a foothold into the Zimbabwean market which has significant upside growth potential when, as expected, the economic climate improves.
“Working together with AAC, we have a long-term vision to create an energetic, innovative and highly regarded pan-African consulting and actuarial leader that offers end-to-end capabilities to Financial Schemes and their Sponsors both in the Private and Public Sector,” said Mr Darfoor.
He said Alexander Forbes has ambitious growth plans in Sub-Saharan Africa and would continue to explore and evaluate potential acquisitions in this regard.
Tinashe Mashoko, the managing director of the Zimbabwe entity, said the company is delighted to become part of Alexander Forbes, whose market leading position will strengthen AAC’s business and allow it to grow its client base not only in Zimbabwe but in the region as well.
“Alexander Forbes is a natural fit for AAC. As a leading brand, Alexander Forbes has expertise, scale and market influence and we could not have found a better investor than them,” Mr Mashoko said.
“Under the Alexander Forbes brand, we will be offering an enhanced actuarial consulting service to our clients and also add value to our clients through the provision of a wide range of advisory capabilities such as risk and investment management, product development and consultancy on regulatory compliance,” he said.