Swiss Re Corporate Solutions is moving away from its standalone direct-insurance operating model in South Africa to a co-operation-led arrangement under which Old Mutual Insure would assume its local corporate insurance portfolio.
The transaction remains subject to applicable regulatory approvals, including the relevant Prudential Authority process. Old Mutual Insure currently expects completion in the first half of 2028, subject to those approvals and other completion requirements.
Following completion, Old Mutual Insure will become the insurer of record, with responsibility for underwriting, pricing, policies, claims, and local client and broker relationships. Swiss Re Corporate Solutions would continue to support the arrangement through its technical expertise and International Programs capabilities.
As a further element of the co-operation, Old Mutual Insure would become Swiss Re Corporate Solutions’ local network partner for International Programs in South Africa, supporting South African corporates and multinational companies with operations in the country.
The transaction concerns Swiss Re Corporate Solutions, the direct-insurance arm of Swiss Re Group. It will not affect the group’s separate property and casualty reinsurance business in South Africa. Old Mutual Insure said existing reinsurance relationships in the market would also remain unaffected.
Old Mutual Insure described the proposed co-operation as a “strategic evolution” in the way Swiss Re Corporate Solutions serves South Africa.
It told Moonstone that the move to a “co-operation-led approach” would enable Swiss Re Corporate Solutions to maintain a strategic presence and continue supporting clients and International Programs through a more scalable structure.
Ivan Gonzalez, chief executive of Swiss Re Corporate Solutions, said in the joint announcement that the co-operation would help the company better support its clients and brokers in South Africa.
“The combination of Old Mutual Insure’s local distribution network and market knowledge with our International Programs capabilities and capital strength creates a scalable model for us to grow long-term in this attractive market,” he said.
‘Much more than a portfolio transfer’
The proposed transaction is intended to strengthen Old Mutual Insure’s corporate property business and expand its specialist capabilities.
Soul Abraham, chief executive of Old Mutual Insure, described the proposed relationship as “a significant milestone in our growth journey”. He said it was the kind of opportunity the insurer wanted to pursue as it entered its “next phase of growth”.
“For us, this is much more than a portfolio transfer. It is about building a long-term strategic relationship, developing specialist capabilities, and creating a compelling platform for sustainable growth,” Abraham said.
In its response to questions from Moonstone, Old Mutual Insure said neither company was disclosing the portfolio’s financial information, number of policies, or total insured value at this stage. It described the business as an established book of South African corporate insurance.
The portfolio would become part of Old Mutual Insure’s corporate property portfolio. Old Mutual Insure did not say whether any individual policies, clients, or classes of business might be excluded.
Policyholders and brokers do not need to take any action at this stage.
“There is no immediate change. Existing policies, service arrangements, and points of contact continue as usual,” Old Mutual Insure said.
The transfer is being structured to maintain continuity for policies and claims in force on its effective date. However, the response does not clarify which company will remain responsible for liabilities arising before the transfer. Old Mutual Insure said the detailed treatment of liabilities would be determined by the final transaction arrangements and regulatory approvals.
