African Bank and Guardrisk to launch insurance venture to guarantee loans
The South African lender is looking to diversify its business.South African lender African Bank, which went into curatorship last year, said it is in "advanced" talks with MMI Holdings' Guardrisk business to form an insurance joint venture that will offer a guarantee on loans.
It told Bloomberg this partnership will contribute to diversifying its business. "We’re considering three or four new insurance products," said Brian Riley, the lender's chief executive officer.
The bank will give more information on the insurance products in the second quarter of 2016, he said, adding that the group intends to target higher-income clients.
A recent statement from African Bank states that full-year loss was down to 7.2 billion rand (€450.7 million) in the 12 months ending in September from 9.3 billion rand a year ago.
Since June, the bank has been lending about 800 million rand a month, up from an average of 540 million rand earlier in the year.