Nadeson Investments, which is led by Hassen Adams, Chairman of Grand Parade Investments, the parent company of Burger King SA, has acquired a 25.1% stake in Risk Benefit Solutions (RBS), one of South Africa’s largest independent insurance and risk specialists, for an undisclosed amount.
RBS currently has over 5000 corporate and commercial clients on its books, as well as 10 000 personal lines clients.
The transaction will result in RBS, whose other shareholders include Hollard and RBS management, attaining a level 4 BEE rating.
Nadeson Investments is a private investment holding company which is 95% black-owned. Hassen Adams and Alan Keet, both directors and shareholders of Nadeson Investments, will form part of the RBS board as non-executive directors.
Adams says that this transaction is a step in the right direction for the transformation of the South African insurance industry. He adds that the partnership will contribute to further enhancing RBS as a leading insurance brokerage and risk management specialist in South Africa.
“We consider RBS a good partner that will assist in diversifying Nadeson Investments’ portfolio. We do not plan to be a dormant partner in the business and will play an active role in growing RBS to the next level. The transaction is one that made commercial and strategic sense to both parties involved.”
CEO of RBS, Michael Petersen, says that the transaction will assist RBS in achieving the aggressive growth strategy planned for the next five years.
“Nadeson brings a wealth of management expertise to the table, and we believe that this will support the organic growth of the business, attract new clients and grow our market share significantly. I am confident that our combined networks will provide RBS with a competitive advantage within the industry.”
He says that as RBS is very active is the corporate market, the empowerment aspect of the transaction is imperative to the business’s growth strategy.
“The transaction also provides our clients with an opportunity to address their own transformation statuses. RBS is committed to the transformation of the insurance industry, and we believe that the transaction will further assist and facilitate broad-based empowerment within the industry, which has been noted in the past as non-committal when it comes to transformation.”
He says that part of the business’s growth strategy is to franchise nationally, which will in turn allow other brokers to address their BEE statuses.
“There are not many BEE opportunities within the insurance sector, so this transaction provides the industry with a noteworthy conduit going forward.”