Having acquired 40% of AC Chrysanthou & Associates in September 2013 to strategically position RBS to expand the company's national distribution, the remaining 60% was acquired last month in an effort to consolidate the group's business and maximise efficiencies and systems, ultimately adding value to clients and increasing the distribution network.
Founded in 1988 as a small proprietorship, RBS today has a staff complement of 130 and is regarded as one of the largest fully fledged financial services advisory firms in Southern Africa after growing its market position through a combination of targeted strategic acquisitions and a focus on driving organic growth.
Michael Petersen, CEO of RBS, says that growth in the South African insurance industry has been stagnant over the last four years, and that this environment has necessitated an alternate strategy to reassess and improve RBS' existing products, as well as to further develop specialist divisions to add value to its current clients, and an attractive and viable value proposition to the corporate insurance market.
"RBS is currently rolling out a national broker network model, and this acquisition will allow us work more closely with brokers in the broader Johannesburg area."
The acquisition of the balance of the shares in AC Chrysanthou & Associates will result in the company forming a division of RBS, and will enable it to market and distribute RBS specialist products to existing AC Chrysanthou & Associates clients.
Founded by Tony Chrysanthou 25 years ago, the Benoni based insurance specialist, had a clear focus to grow and service its client base in the East Rand. "AC Chrysanthou & Associates has developed strong relationships with existing clients through their attention to detail and service, and has successfully achieved significant growth as a result since its formation. We understand that success is only achieved through success of our clients, thereby making the acquisition of AC Chrysanthou & Associates a valuable asset to RBS," say Petersen.
The recent acquisition forms part of RBS' aggressive five year growth strategy, which will see the company continue to develop and expand its various specialists divisions, namely Corporate, Construction and Engineering, Marine and Litigation.
Petersen adds that RBS is looking at further acquisitions in 2015. "We anticipate that the insurance industry will consolidate further in 2015, and we aim to innovate our offerings in order to better service our client base," he concludes.
