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MTN, MMI in micro insurance joint venture

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 07 Sept 2016
MTN is looking to expand its mobile financial services offerings across its footprint, says Herman Singh, group chief digital officer.
MTN is looking to expand its mobile financial services offerings across its footprint, says Herman Singh, group chief digital officer.

MTN Group and MMI Holdings have unveiled a micro insurance joint venture, branded aYo.

The companies say the joint venture will benefit from the scale, combined expertise and market access of both organisations, to provide a strong basis to compete in a changing mobile financial services industry.

MMI is a South African-based financial services group that is listed on the Johannesburg Stock Exchange. It engages in long- and short-term insurance, asset management, savings, investment and employee benefits through its various brands.

MMI Holdings says it remains in a strong capital position with a capital buffer of R4 billion as at 30 June, after allowing for capital requirements, strategic growth initiatives and the final dividend.

The companies point out that insurance penetration is low in many countries across Africa, and utilising the resources and capabilities that MMI Holdings and MTN each provide, aYo will be able to improve this to offer relevant, accessible and easy to use insurance solutions to consumers.

"As MTN, we are excited about this partnership as it gives us an opportunity to further expand our bouquet of mobile financial services offerings across our footprint," says Herman Singh, group chief digital officer of MTN.

"Working with MMI, and harnessing the rapid growth of mobile on the continent, we will be able to leverage our core competencies, strong brands and scale to deliver much-needed insurance solutions to our customers."

Danie Botes, group chief operating officer of MMI Holdings, says the partnership will create new revenue streams for MMI, help achieve significant scale, explore opportunities in new markets and segments, and capitalise on the growth of micro insurance on the continent.

"The partnership will also allow us to further extend our client-centric vision of financial wellness across the Africa continent," Botes notes.

The aYo offering will be rolled out in a number of African countries from the end of 2016.

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