RMB Structured Insurance to Acquire Strategic Stake in CIBTuesday, February 26, 2013
CIB Insurance Administrators (CIB) and RMB Structured Insurance (RMB SI) announced today that RMB SI Investments, the holding company of RMB Structured Insurance (RMB SI) and a subsidiary of JSE listed Rand Merchant Insurance Holdings, has acquired a strategic stake in CIB for an undisclosed amount.
Mr Gustavo Arroyo, CEO of RMB SI, comments on the transaction: "We are delighted to announce this latest strategic investment. Acquiring a shareholding in CIB is very much in line with our investment strategy of taking stakes in organisations that will benefit greatly from an RMB SI shareholding and that will also enhance our Group’s market positioning. The skills, assets and relationships of RMB SI and CIB are so complementary to each other that when these are combined, both organisations will be able to capture opportunities that would not have existed previously.
“A number of these initiatives are already under way. We are looking forward to working with the CIB team in this exciting stage of their business, building up to CIB becoming a stand-alone insurance company."
Douglas Donnelly, CEO of CIB, says, “Having RMB SI as a significant corporate shareholder is in line with our strategy of becoming a fully-fledged ‘A rated’ insurer. We are very proud of this association as it provides CIB with significant additional opportunities to further build the business that our employees and stakeholders are so proud of.”
In addition to Donnelly, CIB has a first-rate leadership team at the helm, which besides himself as founder and CEO, includes Chairman Rex Tomlinson (former Deputy Group CEO of Liberty Holdings Ltd), Brian Mallinson (former Director at KPMG) and Wilhelm von La Chevallerie (actuary and former head of Underwriting at Compass Insurance).
Donnelly continues by saying that CIB has built a strong foundation over the last 18 years in which the company has nurtured, grown and strengthened all the necessary skills, a competitive product range, a highly regarded reputation in the industry and the operational infrastructure required to take the business into the major league of A-rated generalist insurance companies. He mentions the significant barriers to entry and says the past few years have been successful in laying down the necessary foundations needed to take this giant step, adding that the company will continue to concentrate its efforts on broker-distributed insurance.
“CIB already works with over 1 000 supporting brokers around the country and this figure is set to grow considerably. We will focus on large independent brokers, corporate brokers and bank brokers to distribute our products.”
A heavy focus on technology and IT also sets CIB apart because their proprietary IT systems have been developed to increase efficiency and service – another reason, says Donnelly, why CIB, whose shareholders also include Investec and Durban-based private equity firm Buffet Investment Services, is set to become the latest gem in the RMB SI stable.
“We have always believed that there are significant opportunities for a new generalist insurer to bring a fresh approach and healthy competition to the broker-intermediated space, and we are determined to realise this belief. Over the past 10 years the intermediated market has been dominated by four large insurance companies. The market is ready for an A-listed alternative that can bring a fresh, new approach to this sector,” Donnelly concludes.Back