Kieswetter was interviewed following an announcement that Alexander Forbes' board had received "several" expressions of interest to buy Guardrisk.
The board has asked the group executive to consider these approaches formally.
Cell captive insurance allows companies to "self insure" by owning a class of shares‚ or a "cell"‚ in a special purpose vehicle insurance company (cell captives).
Alexander Forbes‚ a specialised financial services company based in Sandton with a footprint in 12 African countries outside SA and in Europe‚ is reviewing its businesses to focus on growing its core employee benefit‚ asset management and insurance operations.
Guardrisk is the largest cell captive insurance group of its kind‚ and a provider of alternative risk transfer.
Alternative risk transfer is the use of techniques other than traditional insurance and reinsurance to provide risk-bearing entities‚ often companies‚ with coverage or protection.
Guardrisk offers short-term and life insurance‚ as well as underwriting and administration management services and it has offices in SA‚ Gibraltar‚ Mauritius and Namibia.
"On its own it (Guardrisk) is a solid business. It is the business least integrated with the rest of the group‚" Kieswetter said.
"If it results in a sale‚ we could use the proceeds to strengthen our balance sheet‚" Kieswetter said.
He said a short-list of potential buyers would be compiled and there would be a further exchange of information. The offers would‚ depending on the outcome‚ be finally evaluated towards the end of this year.
He said Guardrisk had contributed between 8% and 10% of the group's revenue in the last financial year.
Guardrisk said in its 2012 annual report that the total gross written premium for its international operations equated to 7.4% of the Guardrisk's total premium turnover. Guardrisk Insurance and Guardrisk Life's gross premium income amounted to R7.8bn in 2012‚ up by 32% from R5.9bn in 2011.
According to the report total assets increased from R7,7bn to R10bn that year.
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
