Fairfax acquires South African insurer

Fairfax Financial Holdings, a property/casualty re/insurer, has agreed with Zurich to acquire 100 percent of its South African and Botswana offices, Zurich Insurance Company South Africa (ZICSA).

The buying process is yet to be finalised, and is subject to regulatory approvals. The deal is expected to close by the end of 2016.

ZICSA represents an extension of Fairfax’s commercial insurance in Africa and follows its purchase of a 7.15 percent stake of Africa Re in 2015. ZICSA was founded in 1965 with over 800 employees, operating in Africa and Botswana and strategic investments in Swaziland and Mauritius. It is led by its chief executive officer (CEO), Edwyn O’Neill.

Prem Watsa, chairman and CEO of Fairfax, said: “We are pleased to have ZICSA join the Fairfax group. It is a high quality and well-known regional business, with an outstanding management team led by Edwyn o’Neill.

“Africa is a continent that represents a long-term growth opportunity for Fairfax, but where we have traditionally done little primary commercial insurance business. This acquisition represents a key step in expanding our presence in this important market.”