Clientèle and 1Life announce merger

JSE-listed life insurer Clientèle announced plans to acquire competitor 1Life Insurance Limited from Telesure Investment Holdings (TIH) in an all-share deal worth R1.91 billion.

Under the agreement, Clientèle will exchange 26% of its issued share capital to complete the purchase of 1Life. Post-acquisition, TIH will be granted board representation at Clientèle with two director appointments.

The deal is expected to close by June 30, 2024 pending all conditions being met. Group Managing Director of Clientèle, Basil Reekie stated that both the Clientèle and 1Life brands will continue operating independently after merging.

Reekie touted the deal as combining decades of industry experience, trusted services, innovation and specialized offerings between the two firms. This will allow an expanded range of insurance and investment solutions for their collective 1.5 million customers.

By joining forces, the companies aim to strengthen their position in the mass market sector. According to Reekie, the merger will drive operational efficiencies, scale up service capabilities, and enhance product offerings.

1Life reported a net asset value of R1.705 billion and profit after tax of R152.75 million for fiscal year 2023. Together with Clientèle, the combined embedded value of the merged entity will be approximately R7.8 billion.