SPF insurance deal-Securing pensioners’ future |31 January 2006

As can be recalled, Opportunity Investment Co Ltd – a locally registered company jointly formed by the Seychelles Pension Fund and Mauritius’ Swan International Ltd – has bought the 30% “strategic investor” shares in the State Assurance Company Ltd (SACL).

SPF has 51% shares in Opportunity Investment Ltd and Swan International 49%.

The amount paid for the purchase of the 30% shares of SACL (formerly State Assurance Corporation of Seychelles) is R10.5 million, with SPF investing R5.4 million and Swan International R5.1 million.

Pleased with the fact that Opportunity Investment Ltd has been chosen as the strategic investor in SACL, the chief executive officer of SPF, Willy Confait, said although the company now has a seat on the insurance company's board of directors, it has to wait for the completion of sales of other shares on offer, to decide on its next step.

The company's ambition, he said, is to acquire at least 51% of the total shares of SACL.

This, Mr Confait said, would only be possible if the general public and employees of SACL do not take up the 20% and 30% remaining shares being privatised. The shares are to be issued as of March 3 and the complete sale of the insurance company is expected to be completed by April.

The investment made in insurance, Mr Confait said, would enable SPF to diversify its business and maximise revenues that in the long run would bring direct benefits to pensioners.

"It provides us with the possibility of hiking the current 5% interest rate paid to members, in the future, but all will depend on the performance of our investment," Mr Confait said.

Moreover, he added, the investment made would bring the financial security required to sustain the fund in the long run, which means that "in every way it takes into consideration the long-term interests of members."

SPF, which already has other shares in Seychelles Breweries, Caravelle House, SPF complex at Baie Ste Anne Praslin, in housing loans, and has invested R256 million in Treasury Bonds, is eyeing other possibilities for investments and Mr Confait hinted at banking as one of the areas to be targeted.

SPF has at the moment enough capital in its Call Deposit (money on standby) that it could use in any immediate investment.

The partnership with Swan International, Mr Confait said, provides the SPF with a unique opportunity to invest in public companies listed on the Mauritian Stock Exchange, but this Mr Confait said is at the moment not a priority.

However, as part of their arrangement, Swan International has pledged to meet SPF's foreign exchange requirements in the event it decides to embark on this venture.