Bailed-out South African lender African Bank Ltd (Abil) appointed Guardrisk Life on Monday to underwrite its new insurance products after its agreement with Standard General Insurance lapsed.
Guardrisk, which is controlled by South African financial services group Alexander Forbes, started underwriting for African Bank with effect from Sunday.
According to the bank, which was the country’s largest provider of non-collateralised loans before it collapsed in 2014, the arrangement with Guardrisk will allow it to reduce premiums for customers.
After its collapse under a mountain of bad, the South African government appointed external administrators to oversee a restructuring at African Bank that includes carving out a “good bank” from its healthy loan book and assets.
African Bank CEO designate Brian Riley said the Guardrisk deal provides the bank with further momentum in the run-up to the finalising of its restructuring in less than three months.
African Bank was delisted from the Johannesburg Stock Exchange 2014. (Reporting by Thekiso Anthony Lefifi; editing by David Clarke)