MTN Group is taking complete control of aYo, a mobile micro-insurance joint venture with SA’s third-biggest insurer Momentum Metropolitan.
The insurer is exiting the partnership.
“We concluded an agreement to increase our shareholding in aYo to 100% as MMH exits the partnership,” MTN informed investors.
“At the same time, we have announced a strategic alliance with Sanlam, which will help to accelerate our InsurTech growth on the continent, in line with our pan-African strategy. “
The aYo platform will form the base of the alliance with Sanlam, said the telco.
The company said aYo insurance business had more than 13.6 million registered policyholders and 6.3 million active policies, up 31.9% in the six months to end-June.
In total, aYo generated $3.9 million or R56.7 million in service revenue and $6.5 million or R95.5 million in premium income.
MTN announced this week that they are joining forces with Sanlam in an exclusive strategic alliance to distribute Sanlam insurance and investment products across Africa, further developing MTN’s mobile financial services business.
The alliance will build a digital insurance and investment business, an integral part of MTN’s fintech offering. It will provide people across the continent with easier access to these services, particularly those population sectors that have typically been unable to access traditional distribution channels for such products.
The alliance has the potential to pre-empt and adapt to digital disruption in markets where both Sanlam and MTN operate. It will also enable MTN to accelerate and scale its InsurTech offering through its brand and reach and by leveraging Sanlam’s licensing and geographical footprint, as well as its broad product capabilities and expertise.
MTN InsurTech businesses currently have approximately 6 million active policyholders, with target of over 30 million policyholders by 2025 with this new alliance.
For more read: MTN Enters A Strategic InsurTech Alliance With Sanlam