Santam, one of South Africa's leading short-term insurers and the country's largest car insurance companies, is in the process of buying the Emerald Insurance Company from SuperGroup.

The Emerald Insurance Company offers, among other things, car insurance to consumers.

The transfer is still in progress, as the deal requires clearance from the Competition Commission and the registrar of short-term insurances.

Selling the Emerald Insurance Group is part of SuperGroup's recapitalization and restructuring plan as part of its revival. Apart from selling its insurance business, Super Group has also sold some of its Mica stores to consumer goods distributor Massmart.

These and other changes are part of Super Group's strategy to reduce its debt load and ease liquidity woes.

More SuperGroup asset sales are expected in the course of the year. It is estimated that these will contribute to the loss of between 1.12 billion rand and 1.37 billion rand for the financial year to June.

Source: All Africa