The Hannover Reinsurance Group (Africa) has received regulatory approval for its application to consolidate its current, separate short-term and long-term reinsurance licences to a single composite licence, effective 01 January 2021.
The company applied for the new structure to be approved following regulatory changes, which now allow for reinsurance companies in South Africa to hold a composite licence.
Globally, this is the most suitable structure for reinsurers and the company has indicated that the change now brings it into alignment with the operating structures of other international territories, in which Hannover Re operates.
The company further indicated that the new structure would optimise operations and allow for the most efficient allocation of capital.
The structural change will result in minimal organisational re-alignment and there will be no impact on client-facing functions or on the company’s human resources capacity.
The new combined entity will be renamed Hannover Re South Africa. The name change is indicative of the country of domicile and the company will continue to write business on the continent.
Hannover Re (SA) is well capitalised and additionally has a parental guarantee in place, guaranteeing all policyholder liabilities.
The new entity will enjoy continuity of leadership with the executive management team of Hannover Re (South Africa) remaining unchanged as follows: Achim Klennert (CEO), Quintin Landman (CFO); Wesley Clay (MD of Life & Health) and Randolph Moses (MD of Property & Casualty).
The reinsurer has a long relationship with the South African market and the continent, with a fully-fledged presence in the country since January 2000, demonstrating its commitment to the market many times over.