NOTICE OF TRANSFER OF FNB AND ASHBURTON BRANDED POLICIES, UNDERWRITTEN BY MMI GROUP LIMITED, TO FIRSTRAND LIFE ASSURANCE LIMITED, IN TERMS OF SECTION 38 OF THE LONG-TERM INSURANCE ACT, 52 OF 1998
Notice is hereby given in terms of Section 38(1) (a)(ii) of the Long-term Insurance Act, 52 of 1998 (hereinafter referred to as "the Act" ), that it is the intention of MMI Group Limited (registration number:
1904/002186/06) ( "MMI Group" ) to transfer its FNB Life business and Ashburton business, which it carries on in the Republic of South Africa, to FirstRand Life Assurance Limited ("FirstRand Life") (hereinafter referred to as the "Proposed Transfer" ).
The policies affected by the Proposed Transfer are i) all Ashburton branded linked endowment policies and living annuity policies underwritten by MMI Group and administered by Ashburton Investor Services Proprietary Limited (registration number 2011/139123/07) ( "Ashburton" ); and ii) all FNB Life branded credit life, funeral, personal accident, cover for life, hospital cash plan and lifestyle protector policies underwritten by MMI Group and distributed through FirstRand Bank Limited (registration number 1929/001225/06) ( "FirstRand Bank" ), collectively "the Transferred Policies".
It should be noted that FirstRand Life, Ashburton and FirstRand Bank all form part of the FirstRand group of companies. The Transferred Policies will continue to be administered in the same manner after implementation of the Proposed Transfer.
Due to the fact that the Proposed Transfer envisages a transfer of the Transferred Policies from MMI Group to FirstRand Life without the policyholders' consent for the implementation of the Proposed Transfer, a detailed regulatory process is prescribed in terms of the Act, which includes, amongst others, the approval of the Proposed Transfer by the Registrar of Long-term Insurance ( "the Registrar" ).
If the Proposed Transfer is approved by the Registrar and the Competition Authorities, FirstRand Life shall be responsible for the fulfilment of all the obligations of MMI Group towards the policyholders of the Transferred Policies.
Details of the Proposed Transfer are contained in a sale agreement entered into between MMI Group and FirstRand Life, dated 5 April 2016 ( "the Agreement" ). The Agreement is subject to the fulfilment of suspensive conditions, which includes, amongst others, that the Proposed Transfer is approved by the Registrar and by the Competition Authorities.
The approval by the Competition Authorities has since the date of the conclusion of the Agreement been granted. The Proposed Transfer will be implemented on the first day of the month immediately succeeding the month during which the Agreement becomes unconditional.
Copies of the Agreement, the reports of the statutory actuaries of MMI Group and FirstRand Life in respect of the Proposed Transfer; and any other documents required by the Registrar, shall be available for inspection for a period of 15 (fifteen) days commencing on 29 August 2016 until 12 September 2016 from 09h00 to 17h00 (Saturdays, Sundays and public holidays included) at the reception areas of the head offices of FirstRand Life, Ashburton and MMI Group, whose details are as follows:
These documents will also be made available on the websites of Ashburton at www.ashburtoninvestments.com, FirstRand Bank at www.fnb.co.za and MMI Group at www.mmiholdings.com with effect from 29 August 2016 until 12 September 2016.
In terms of Section 38(1)(b) of the Act, any person who has an interest in this matter, may, within 15 (fifteen) days from the date of publication of this notice in the Government Gazette on 26 August 2016 submit to the Registrar such representations concerning the Proposed Transfer as are relevant to his/her/its interests. The representations must reach the Registrar no later than 12 September 2016.
MMI Group and FirstRand Life intend to lodge an application with the Registrar on 26 September 2016 for the approval of the Proposed Transfer in terms of Part V of the Act.
Please direct all telephonic queries to the FNB call centre at 087 335 8777 or to the call centre of Ashburton at 0860 274 287, or per email to Section37fnblife@fnb.co.za. Alternatively direct your enquiry to the Registrar, per email to Janet.Ehlers@fsb.co.za.
FSB notification (excluding annexures)
Special Resolution of FirstRand Life
MMI Group Annual Financial Statements for the year ended 30 June 2015 - part1
MMI Group Annual Financial Statements for the year ended 30 June 2015 - part2
FirstRand Life Annual Financial Statements for the year ended 30 June 2015
Report by the Statutory Actuary of MMI Group Limited
Report by the Statutory Actuary FirstRand Life Assurance Ltd
Change in insurer
The FirstRand Group has a new long-term insurer, FirstRand Life. Notice of transfer of FNB policies, underwritten by MMI GROUP to FIRSTRAND LIFE.
Physical address
4 Merchant Place Corner Fredman Drive and Rivonia Road Sandton 2196
Postal address
PO Box 650149 Benmore 2010
