One approach for insurance business

THE ADMINISTRATORS of African Bank Investments, which collapsed last year, have received at least one approach for the group’s insurance business, according to two people with knowledge of the matter. Both asked not to be identified because the discussions are private. Stangen, as the insurer is known, sold credit life insurance and funeral policies to customers of the lending unit of African Bank Investments, or Abil, which was South Africa’s largest provider of loans not backed by assets. The unit, known as African Bank, was going to buy Stangen from Abil for R1.38 billion as part of its rescue plan. This sale collapsed after some of Abil’s shareholders objected to the valuation placed on the insurer and said it could be sold for R8bn. Without a bank to supply it with customers, Stangen has active policies but can’t take on any new business. The would-be buyers intend to profit from managing the policies until the last premiums were paid, while Stangen’s inability to attract new customers reduced its valuation in any takeover, they said.– Bloomberg