• Sharebar
Tuesday, July 1, 1997
Niche players regroup

Clientele Financial Services and the Hollard Insurance have formed a joint venture in which Crusader Life will acquire the business of Clientele, prior to a listing on the Johannesburg Stock Exchange.
Hollard recently acquired Crusader in terms of a Scheme of Arrangement approved by the High Court on 6th May 1997. Simultaneously all of the then existing business of Crusader Life (other than the ELLA business introduced by UAL, which has been transferred to Southern Life), was transferred to Hollard Life Assurance Company in terms of Section 31 of the Insurance Act.
The Crusader Life shell will be recapitalised and re-named Clientele Life Assurance Company, and will acquire the business of Clientele Financial Services, a well-known direct marketing life assurance brokerage and administration company. The merged operation will constitute a fully-fledged life assurance business following the acquisition and re-capitalisation. Thereafter, subject to the approval of the Johannesburg Stock Exchange, it is intended that the currently suspended listing of Clientele Life (formerly Crusader Life) will be reinstated.
Formal announcement
Further details will be contained in a formal announcement to be made and full details of the transaction will be provided in a prospectus to be issued in the near future.
Bruce Howard, CEO of the new life company said, “Over the past five years Clientele has established itself as a well-known and highly successful life assurance, broking and administration company serving the whole of South Africa through the electronic and postal media from its base in Morningside, Johannesburg.
“This transaction transforms the Clientele Financial Services business into a life assurance business and takes it into the public realm. It is propitious for this development to have occurred at this stage in the company’s history as Clientele Life will commence business with over 75 000 existing clients and over 100 well- trained employees. With this client base, established infrastructure and sound new capitalisation, Clientele is set to become one of the fastest growing life offices in South Africa, drawing strength from its association with the Hollard Group and reinforced by the rapidly growing market segment which it serves.”
Chairman of the new Group, Patrick Enthoven, said, “We have found Clientele Financial Services to be one of the most innovative and well-managed businesses ever investigated by ourselves. Clientele Financial Services has been remarkably successful since its establishment and has developed a thoroughly professional life assurance distribution and administration system.”

Copyright © Insurance Times and Investments® Vol:10.7 1st July, 1997
792 views, page last viewed on July 16, 2019