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 million).
“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 Sithole-Matarise)