BrightRock has posted a bright performance in its most recent financial year, achieving 62% growth year on year in new business annualised premium income. The company shared an update on its business performance on the back of an announcement released by Sanlam, in which it announced that all suspensive conditions to the transaction that will give Sanlam a 53% stake in the insurance provider have been fulfilled, including regulatory approval.
Schalk Malan, CEO of BrightRock, says the insurer has grown rapidly in the independent intermediated risk insurance market and is the fastest-growing player in its sector – a position it has maintained for the past number of years. From a zero base in April 2012, BrightRock has grown to cover a total of over 860 000 lives (as at 30 June 2017). Total annualised premium income was R867 million for the year ended 30 June, while total cover in force now exceeds R180 billion.
BrightRock is proud of what’s been achieved. “BrightRock came to market just five years ago with a fundamentally different, client-centric product design that can adapt seamlessly to changes in clients’ lives. We believe this focus on precisely meeting clients’ needs has been the driving force behind our consistently strong growth,” he says.
This structure is more efficient as it strips out unnecessary waste and delivers savings to clients. On average, BrightRock policyholders are able to buy 40% more cover with BrightRock for every rand. The insurer’s client-centric approach has allowed it to increase certainty for clients at claim stage. BrightRock has paid an average of almost R1 million in claims every day over the past financial year, with total claims paid since inception exceeding R470 million.
BrightRock’s exponential growth trajectory is one of the key reasons for its new partnership with Sanlam, which will provide significant capital investment enabling the company to deliver on its future plans. “We see it as a growth partnership and one that will provide an even stronger platform for BrightRock’s future growth and expansion. BrightRock’s aspirations include other product lines and markets, and our new partner is supportive of our objective of becoming a financial services provider of scale.”
Under the agreement, Sanlam and BrightRock will continue to function as independent businesses, retaining their own brands, life insurance licences and management teams. The transaction with Sanlam was implemented with effect from 1 September 2017 at a total transaction price of R721 million.
Read more: Sanlam and Brightrock – an insider’s view