Capitec will end its funeral policy deal with Sanlam after seven years, as the bank now has its own licensed insurer, Capitec Life. The joint venture, which allowed Capitec to sell Sanlam-backed funeral policies to its clients, will conclude on 31 October 2024. Capitec’s licensed insurer, Capitec Life, will take over the administration of the current policies. The deal covered 2.4 million funeral policies, with the group earning almost 4% of its total income from operations through the agreement. As part of the termination, Capitec will pay Sanlam a R1.9 billion as a “reinsurance recapture amount.” Research by UBS shows that Sanlam’s share of the “entry level” market grew from 20% before the Capitec agreement to 40% by the first half of its 2022 financial year.
