Investec, which focuses mainly on private banking and asset management, said it would offer life insurance from September of this year to fill what it sees as a gap in its product range.
“I think it is a hole in our offering and it is something we think we can be pretty successful at,” chief executive Stephen Koseff said during the company’s results presentation, reported Reuters.
“We have had a life insurance licence for decades but we never used it and we feel it’s a very appropriate product to offer to our client base.”
The move follows in the footstep of other banks, such as Firstrand, Discovery and Capitec, which have begun to offer life insurance and other products capitalise on economies of scale with massive outlays, driven by greater competition in the industry.
The comments were made during the asset manager’s full-year results, reporting a 17% rise in annual profit, spurred by its asset management and specialist banking businesses.
“The Asset Management and Wealth and Investment businesses have benefited from higher funds under management supported by rising market levels,” the company said in a statement.
