(Corrects name in third paragraph.)
Oct. 13 (Bloomberg) -- Swan Insurance Co. and Rogers & Co. plan to combine parts of their businesses to create the largest insurer in Mauritius, overtaking Mauritius Union Assurance Co.
Rogers and Swan also plan to merge their stockbroking and property management services, the companies said on the Port Louis-based Stock Exchange of Mauritius’s website today. Rogers will amalgamate its CIM Insurance Ltd. unit with Swan Insurance Co. while CIM Life Ltd. will combine with Swan’s Anglo-Mauritius Assurance Society Ltd., they said.
The transaction will result “in the most significant insurance and investment entity in Mauritius, the largest insurer for general insurance by premium incomes and second- biggest for life insurance,” CIM Financial Services Ltd.’s Chief Executive Officer Vaughan Heberden said in a mobile-phone interview today. “It’s the potential formation of a larger investment entity able to compete locally, regionally and internationally.”
Swan Insurance is the second-largest listed insurer with a market value of 2.3 billion rupees ($79 million), according to data compiled by Bloomberg, whilst Anglo-Mauritius Assurance has a market value of 1.7 billion rupees.
CIM Financial Services manages assets of about 5 billion rupees in domestic and foreign equities, foreign currencies and bonds, according to Heberden. Anglo-Mauritius Financial Services Ltd. has assets in excess of 16 billion rupees, according to its website.
“The domestic insurance industry is going through consolidation. You need to have significant muscle and depth” to compete, he said. “There are significant opportunities in Africa, going forward.”
The transaction still needs approval from regulators, Herbeden said.
--Editors: Vernon Wessels, Gordon Bell
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