New parent company for PrefSure Life
Local risk insurer PrefSure Life has announced that its overseas parent company, Capital Alliance Holdings Limited, will be acquired by Liberty Group Limited for a consideration of approximately $691 million.

Liberty Group is a major player in South Africa and in 2004 had a total embedded value of $3.5 billion with total premium income revenue of $4 billion.

Capital Alliance Holdings Limited and Liberty Group Limited are both incorporated in the Republic of South Africa, with Capital Alliance being the majority shareholder of PrefSure Holdings Limited.

PrefSure Life in Australia has an annual premium income of approximately $200 million. Managing Director of PrefSure Life in Australia, Geoff Black, said the change will further strengthen PrefSure’s position.

“Upon the implementation of the scheme, Capital Alliance will be an integral part of an even stronger and larger financial institution. In Australia, PrefSure Life looks forward to being part of that stronger group,” said Black.

Liberty Group recently announced to the Johannesburg Stock Exchange that the Company intends to acquire all of the issued share capital of Capital Alliance. It proposed to implement the offer by way of a scheme arrangement according to South African law, following which Capital Alliance will become a wholly owned subsidiary of the Liberty Group.

Subject to obtaining all of the necessary regulatory approvals it is envisaged that the scheme will be implemented by 31 March 2005. Liberty’s major shareholder is Standard Bank Group Limited, one of the largest financial institutions in South Africa.

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Released for PrefSure Life by Dennis Rutzou Public Relations.
For further information contact David Lizzio or
Dennis Rutzou on + 61 2 9413 4244