The Competition Commission of South Africa has recommended approval for Capitec’s acquisition of Guardrisk Life’s credit life insurance business, marking a significant step for Capitec as it begins underwriting its own insurance products. This follows Capitec’s obtaining a long-term insurance licence in the 2023 financial year and starting to issue credit life policies in May 2023, previously underwritten by Guardrisk. The transfer of approximately 550 000 Guardrisk policies to Capitec’s insurance business is expected to be completed by August. The deal’s approval is conditional on Capitec addressing public interest concerns by funding firms owned by historically disadvantaged individuals. Capitec, which already covers 12 million people with funeral policies and holds a 35% market share of new customers, plans to start issuing its own funeral policies from November 2024, following the end of a partnership with Sanlam. Capitec’s insurance business reported a 12% profit increase, reaching R3.1 billion, in the last financial year, positioning the company for further growth in South Africa’s lucrative insurance market.
