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Absa offloads its commercial lines brokerage to PSG

Johannesburg - Absa’s Wealth, Investment Management and Insurance (WIMI) division has announced that it has initiated a journey to optimise its Financial Advisory business (WIMI Distribution) to enable the business to respond effectively and efficiently to changing market conditions.

The bank said it had concluded an agreement with the JSE listed group, PSG Konsult Limited (PSG) to dispose of its Commercial & Industrial Lines Short Term Insurance brokerage business (C&I). PSG is recognised for offering specialist skills and a broader distribution capability through its 200+ offices across South Africa.

As is typical for a transaction of this nature, it remains subject to inter alia regulatory approvals and related processes.

Bongiwe Gangeni, Managing Director of the WIMI Distribution said: “Our intention is to refocus WIMI Distribution in areas where we can achieve sustainability and profitability, whilst providing our customers with the most appropriate and convenient access to financial products and solutions.

“The impact of the sale is expected to be minimal on both clients and advisors alike, meaning existing advisor relationships with clients will continue. The transaction does not have bearing on clients’ insurance products. Absa’s broader banking relationship with its clients will continue.”

Absa said it commits to maintaining services standards that customers are accustomed to during the transition period.