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Category:
Insurance
News /
Life
Insurance /
Channel Life
/ May 2007
Channel Life poised for even more growth
Alfinanz to extend its capabilities to other entry-level players
within the Sanlam Group.
Channel Life, one of the leading entry-level life insurance
companies in South Africa, has announced a change to their
management structure, which will position Channel Life and its
majority shareholder Sanlam for further expansion.
Channel Life Chairman Leon de Wit, today announced the appointment
of a new CEO, the sale of a 50% stake in subsidiary Alfinanz to
Sanlam and the redeployment of a senior executive to spearhead a new
Sanlam-led group initiative, which includes third parties.
“During the last two years, Channel Life has shown its competitors
that exponential growth in the entry-level life insurance market is
possible,” said De Wit.
“Our two major shareholders - Sanlam and PSG – are happy with the
performance of their investment and there is no question that the
Channel Life leadership has played an important role in this
performance, with René Otto as CEO driving strategy.”
Otto, who has a tried and tested pedigree when it comes to
innovation and creativity, was responsible for creating several new
distribution channels, including a large call center, a network
marketing business, the establishment of an independent broker
division and more recently, the provision of financial services
directly to deep rural areas.
Otto will drive the new Sanlam-led initiative from July and he will
be replaced by Lennie Louw (Pictured right), who has a sound history
with Channel Life, going back to his days as MD of Channel Life
Namibia.
“The Namibian operation was one of the success stories in the early
days of Channel Life,” says De Wit. “When we sold the Namibian
business in 2004, Louw and his senior team relocated to
South Africa
and launched Channel South, which, within two years became the
biggest single contributor to the new business growth.”
Louw has a well-earned reputation as an astute businessperson with
specific experience in the sustained business development and growth
of entry-level life insurance businesses. “It is this expertise and
experience, combined with his proven business management skills that
will take Channel Life to the next level,” says De Wit.
On
the Alfinanz deal, De Wit announced that Sanlam is to acquire 50% of
Alfinanz from Channel Life and Channel Life will hold the remaining
50%.
“Alfinanz is essentially an administration factory,” says De Wit,
“that renders back office administration and technology services to
Channel Life and other third parties.” The strategy for Alfinanz is
to extend its capabilities to the other entry-level players within
the Sanlam Group – Safrican and the South African operations of
African Life, with African expansion following at a later stage.
“Clearly, the spin-off for Channel Life lies in reduced
administration costs, as the Alfinanz platform becomes even more
economical on the back of increased volumes.”
Source: ITInews – Insurance
Times and Investments Online
www.itinews.co.za
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