Financial services group Wipcapital announced yesterday that it's private equity division had taken a 30% stake in emerging market insurer Clarendon Transport underwriters.
Clarendon provides insurance to 90% of SA's Insured taxi industry. It was previously owned by Fedsure General and the worlds's fifth largest reinsurer, Hannover Re. The remaining 20% of the 10 year-old company was owned by management. Hannover Re and Fedsure General now jointly own 60%, while Wipprivate Equity owns 30% and management 10%.
Clarendon offers comprehensive cover as well as balance of third party, fire and theft for taxis, coaches and mini-buses, as well as extensions such as as personal accident, passenger liability credit shortfall, lease cost, loss of use and funeral insurance.
Clarendon is a leader in emerging market insurance and has shown an annual growth of more than 15%, with premium income of R70m a year. we believe that the have successfully carved out a market for themselves and that they have excellent growth prospects" said Wipprivate equity director taurai Muranda.
Clarendon has more than 500 brokers who market it's products and the firm has strong commitment to empowering black brokers. "We believe empowering black brokers leads to empowerment of the whole community. Wipcapital's empowerment credentials and solid skills base really appealed to us and we are confident that they will add a lot of value to our business" said Clarendon MD Louis Fivaz.
Wipcapital said it would sit on the board of Clarendon, and work closely with management to ensure continued growth of it's markets. "Taxi insurance regulations have become stricter this year. It is already compulsory to have passenger liability insurance and, with only 6%-7% of taxis insured, there is huge upside in this market" said Muranda.