Old Mutual in talks to acquire Moonlight Funeral Assurance
HARARE – Old Mutual is in talks to acquire Moonlight Funeral Assurance as part of its efforts towards forward integration, complementing its life business.
Old Mutual is the country’s largest life assurance company controlling about 38.71% of the market in June 2019 in terms of revenue and 79.71% in terms of assets. Old Mutual already has a product it runs in partnership with Moonlight; Moonlight Cash Plus, which is targeted at low income earners. The product, Moonlight Cash Plus, offers both funeral services and a cash pay-out.
Contacted for comment, Old Mutual Corporate Affairs and Marketing head Lillian Mbayiwa said that the financial services group continues to explore opportunities for growth, collaboration and partnerships that will deliver a world class customer experience for clients.
She however said: “The market will be advised as and when new developments happen.”
Mbayiwa talked up the partnership with Moonlight saying that since September 2017 partnered with Moonlight on the Moonlight Cash Plus Funeral Plan.
Moonlight, which also runs the Mashfords Funeral Parlours reported gross premium written in the period to June 2019 was at $7.33m, an increase of 23.42% on last year. It controls 29% of the market based on GPW behind Doves but has a much greater capital position with a share of 48.83%. The market has nine players.
Moonlight is owned by Grant Nakhozwe.
The acquisition will provide a direct challenge to Nyaradzo Life Assurance. Competitor Fidelity Life also runs a funeral insurance business, which has however not been adequately capitalised.
Well-placed sources said that the two parties had since signed an NDA and discussions are still in preliminary stages.
“The discussions are still at the earliest stages. It’s hoped they will culminate in Old Mutual buying a significant stake in Moonlight,” said a source close to developments.
Old Mutual Corporate Affairs and Marketing head Lillian Mbayiwa did not respond to emails sent to her by this publication on Nov 21, in spite of several promises that she was close to sending. FINX ONLINE
