Absa, a South African financial services provider a member of Barclays Africa Group, has reached an agreement to sell a component of the unit to financial services firm PSG Konsult as it seeks to streamline its wealth, investment management and insurance (WIMI) unit.
The proposed deal will see the lender sell off Absa Insurance and Financial Advisors’ commercial and industrial short-term insurance business line for an undisclosed fee. It follows an agreement to sell employee benefits provider Absa Consultants and Actuaries to insurer Sanlam earlier in 2017.
However, Bongiwe Gangeni, MD of WIMI Distribution, said the two transactions were not related.
“As with any successful and sustainable organisation, we continue to enhance our business strategies and the way we do business in order to remain relevant to our customers and provide them with a positively memorable experience with us,” said Gangeni.
“The market has become increasingly competitive with heightened regulations and ongoing technological advancements. Our aim is to refocus WIMI Distribution in areas where we can achieve sustainability and profitability.”