FirstRand's broking arm makes KwaZulu-Natal acquis
FirstRand's broking arm makes KwaZulu-Natal acquisition
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FIRST Link, the short-term insurance broker in the FirstRand Group, announced its acquisition of Rutgers & Checkley insurance brokers in Pietermaritzburg yesterday for an undisclosed amount.
Keith Young, MD of First Link, said Rutgers & Checkley had a strong book of commercial and personal lines business with a premium income topping R70m a year and brokerage income of about R9,5m a year.
Young said that consolidation in the industry was set to continue with the introduction of the financial advisers and intermediary services legislation, because many smaller brokers would struggle to put the processes required in place.
The legislation requires the registration of advisers, that they meet fit and proper requirements to obtain a licence to practice as financial planners, and that they adhere to a code of conduct in order to maintain their licence.
First Link has been making acquisitions as part of its growth strategy.
In the past two months, the company announced the acquisition of Roos Vosloo Brokers of Bellville and Mared Insurance Brokers of Newcastle. Roos Vosloo handles R30m a year in premiums and Mared Insurance Brokers handles about R7m.
Young said First Link's acquisitions were being funded directly from its cash flows, which continue to be healthy.
He said acquisitions would continue in selected markets and where First Link could benefit from good-quality human resources with those acquisitions.
Nov 12 2003 07:52:55:000AM Rochelle McCauley Business Day 1st Edition
Wednesday
12 November 2003
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