Motsepe’s ARC launches insurance subsidiary African Rainbow Life

South African billionaire Patrice Motsepe’s financial services group African Rainbow Capital (ARC) has launched an insurance subsidiary firm called African Rainbow Life.

African Rainbow Life will focus on long-term insurance products including life cover, savings, investments, retirement annuities and funeral cover, primarily aimed at the lower to middle income market.

The 100% black managed company is 51% owned by Sanlam Life Insurance, 26% by ARC Financial Services, with the remaining 23% held by Siyakhula Consortium – a staff, community and management trust.

Former Lion of Africa Insurance CEO and managing director of the mass market cluster and corporate businesses at Old Mutual South Africa Bongani Madikiza will head up African Rainbow Life.

“Our customers are typically low to middle income earners who historically have had little access to sound financial advice or cost effective financial services products around which they can effectively plan for their financial futures,” said Madikiza.

The launch of African Rainbow Life represents ARC’s first foray into the retail space, having previously focused exclusively on the institutional space.

“As an empowerment investment holding company, we primarily conduct business on a B2B basis. With the launch of African Rainbow Life, consumers will now have their first direct experience with our brand,” said ARC’s co-CEO Johan van Zyl.

“We trust that consumers’ experience will be characterised as one of responsible businesses practices as well as excitement as we aim to positively impact the lives of many people.”