Santam, South Africa’s largest non-life insurer, has taken full control of Indwe Broker Holdings after acquiring the shareholding from African Rainbow Capital Financial Services and Sanlam.

Before the transaction, Santam held 24% of Indwe, while ARC Financial Services owned 51% and Sanlam held 25%.

The transaction makes Indwe a wholly owned subsidiary of Santam and includes Indwe Risk Services, the personal and commercial arm of Indwe, and Indwe BlueStar, its financial services arm.

ARC Financial Services is a subsidiary of African Rainbow Capital and Ubuntu-Botho Investments. The latter is a shareholder of Sanlam and is its broad-based black economic empowerment partner. Santam is a subsidiary of Sanlam.

The purchase price for the 76% shareholding was R125m.

“Santam has been a significant shareholder since Indwe’s inception. This transaction cements the relationship and enables us to create a stronger presence in the industry. It also highlights their ongoing confidence in the business,” said Indwe chief executive Peter Olyott.

A second development at the business is the formation of Simah Risk Holdings, created by moving the large corporate and specialist offerings out of Indwe. This business will be owned by ARC Financial Services Investments and management.

For the financial year to the end of December, Indwe’s net profit after tax was R11m (2020: R21m), while its net asset value was estimated at R102m (R94m).