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S.Africa's Liberty sells short-term insurance tech platform to Standard Bank
JOHANNESBURG, Feb 27 (Reuters) - South African insurer
Liberty Holdings has agreed to sell its technology
platform, which supports its short-term insurance business, to
Standard Bank Group Ltd for 145 million rand ($10.45
"The transaction provides Liberty Holdings with the
opportunity to reduce future capital requirements and de-risk
its business," it said in a statement.
The proceeds from the disposal, which includes moveable
assets and intellectual property, will be used to support
Liberty's existing business and to deliver various initiatives
under its turnaround strategy, it added.
The company said last year it would slow its expansion and
focus on higher margin products as part of the strategy.
Liberty's short-term products are underwritten by Standard
Insurance Limited, a wholly owned subsidiary of Standard Bank.
The short-term insurance technology platform allows
customers to pro-actively manage their short-term risk.
Liberty said for the financial period ended Dec.31, the
recorded loss attributable to the business from costs incurred
in establishing the technology platform was 51 million rand
($3.68 million) and the capitalised expenditure incurred up to
Dec. 31, was 94 million rand.
($1 = 13.8761 rand)
(Reporting by Nqobile Dludla; editing by Emelia
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