Rand Mutual Assurance (RMA) and African Rainbow Capital (ARC) are pleased to announce that ARC has acquired a 30% shareholding in Rand Mutual Holdings for an undisclosed consideration.
Rand Mutual Holdings is a wholly owned subsidiary of RMA, and is the company within the RMA Group under which all long-term insurance products are housed. This excludes RMA which administers compensation to workers injured in the course and scope of their employment in the mining and metals industries.
“We are extremely excited to have ARC on board as a strategic partner, and look forward to the new ventures and opportunities that this partnership will bring,” says RMA CEO, Jay Singh.
“Going into partnership with a company with a solid reputation in the financial services industry can only bring positive opportunity for the RMA Group. The transaction does not affect our core worker’s compensation business, nor does it affect the current staff, management or the RMA Group’s strategy in any way.”
ARC is a black-owned and controlled company within the South African and African financial services industry.
Dr Johan van Zyl, ARC co-Chief Executive Officer, says: “This transaction is the start of a mutually beneficial partnership with Rand Mutual Holdings. We are combining the RMA Group’s long, successful history of administering workers’ compensation with ARC’s expertise and network in insurance and financial services more broadly. Over time, we aim to empower more people with access to more cost-effective and more inclusive financial services products, and this includes RMA’s broad membership base. We believe the relationship will be synergistic and value will accrue to both RMA members as well as ARC’s financial services business.”
The transaction is subject to several conditions being met, including regulatory approval.