With the merger of Relyant, the Group found itself with two registered short term insurance companies i.e. Customer Protection Insurance Company Limited (“Customer Protection”) and Relyant Insurance Company Limited (“Relyant Insurance”). Given the fact that Relyant Insurance has an unrestricted licence thus enabling it to underwrite short term insurance risks for third parties, it is intended that the Group’s short term insurance activities be consolidated into Relyant Insurance once the necessary technical and regulatory issues have been complied with.

The Relyant merger also provided the Group with access to a long term insurer in Relyant Life Assurance Company Limited (“Relyant Life”) through which company the Group has already commenced underwriting its funeral policies with effect from 1 July 2005. Prefsure (Botswana) Limited (“Prefsure Botswana”) also provided the Group with the opportunity of underwriting the risks of its entire Botswana operations, thus adding significantly to the volumes and, as such the viability, of Prefsure Botswana, whilst enhancing overall returns to the Group.

The insurance operations are a very significant part of the integrated credit business and will continue to be so even once the new National Credit Bill (“Credit Bill”) comes into operation, albeit on a re-engineered operational basis taking into account the new parameters being set under the
new Credit Bill.

The unrestricted licences will create numerous opportunities which are currently being explored both on the short-term insurance side, as well as with long term assurance whereby policies which are not linked to specific credit sales will be marketed to the customer base of the merged Group.

The administration and compliance issues of the insurance businesses have now been outsourced to Transqua Administrators which is a wholly owned subsidiary of CICL Investment Holdings. This will ensure access to well trained staff and sophisticated systems which will form the platform for the further expansion and marketing of an increased range of insurance/assurance products to the Group’s customer base.

All the above companies comply fully with the requirements of the applicable Short Term Insurance and Long Term Assurance Acts and with the FAIS requirements.