MultiChoice selling huge chunk of insurance business to Sanlam in R2.7-billion deal


Sanlam and MultiChoice announced that they have entered into an agreement for the financial services provider to acquire 60% of MultiChoice’s insurance business, NMS Insurance Services (NMSIS).

Sanlam will pay R1.2 billion cash upfront, with a potential performance-based cash earn-out of up to R1.5 billion.

The earn-out is contingent on the amount of gross written premium generated by NMSIS for the financial year ending 31 December 2026.

The agreement also includes a long-term commercial arrangement to expand insurance and related financial service offerings into MultiChoice’s extensive African subscriber base.

MultiChoice said it will use the proceeds from this transaction for working capital.

It also said that it retains a substantial 40% stake in the business, allowing it to continue benefiting from this segment’s high growth potential while maximising value for its shareholders.

“Through this commercial arrangement, Sanlam and its affiliates have the opportunity to cross-sell financial services products to MultiChoice’s extensive and engaged subscriber base of 21 million households across 50 countries in Africa,” MultiChoice stated.

“Sanlam will leverage MultiChoice’s engagement channels and integrated payment collection capabilities to deliver these broader offerings to MultiChoice’s subscribers.”

Opportunities outside of South Africa will be facilitated through SanlamAllianz, MultiChoice stated.

“This collaboration with Sanlam is a strategic milestone for MultiChoice,” said MultiChoice CEO Calvo Mawela.

“It not only allows us to increase the value we provide to our subscribers, but also enables us to leverage Sanlam’s expertise to drive growth and innovation in our insurance offerings across the continent.”

NMSIS is a registered South African composite micro-insurer and authorised financial services provider, licensed to underwrite non-life and life insurance products.

It has been writing insurance for the past 20 years under the DStv brand of MultiChoice, focusing on device, installation, funeral, subscription waiver, and debt waiver insurance products.

NMSIS’s key financials for the year ended 31 March 2024 were as follows:

  • Gross written premium increased 36% year-on-year to R970 million
  • Profit after tax increased 51% to R296 million
  • Net asset value of R277 million

Sanlam will oversee the NMSIS operations through its Sanlam Fintech cluster.

The transaction is subject to the necessary regulatory approvals from the South African competition and regulatory authorities.



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