Black women-owned investment company, Sinayo Global, confirmed today that it had successfully acquired a further 20% stake in bus and taxi underwriting manager, CTU, boosting its shareholding to 30%. Significantly, this establishes Sinayo as the largest shareholder in the 33-year-old entity, having acquired most of the new shares from previous majority shareholders, the Hollard Insurance Group (“Hollard”) and Lireas Holdings (part of the Hannover Re Group).
Founded in 1991, CTU is South Africa’s leading provider of insurance to South Africa’s mini-bus taxi industry, having paid more than R374 million in claims in the last year. Its offering has expanded over the years to include insurance solutions for buses, e-hailing vehicles, metered taxis, scholar and staff transport, shuttle services and tourism transport portfolios.
The acquisition is significant for Sinayo, establishing the company as a serious player in an important niche of the South African short-term insurance industry. Almost 65% of South African commuter transport is provided by mini-bus taxis, and the formalisation of the industry is likely to increase demand for insurance in the sector. The industry supports a vast ecosystem, creating direct and indirect employment for thousands, including drivers, conductors, and ancillary service providers such as mechanics and car washers. As the sector formalises and grows, it not only enhances transportation but also stimulates broader economic benefits and job creation. Being the main shareholder in an established insurance provider to this burgeoning sector allows Sinayo to live its vision of touching lives by being game changers.
Sinayo CEO, Babalwa Ngonyama, said, “Our relationship with Hollard and the team at CTU has always been strong, and we’re excited by the opportunity to take this next step in our journey together. We believe that Sinayo can contribute to innovation and growth within this dynamic sector and fully expect that CTU will not only cement its place as South Africa’s leading bus and taxi insurer, but become the foremost provider of insurance to the entire commuter transport sector.”
“At Sinayo, we believe in harnessing human potential through innovation to create tangible impact,” continued Ngonyama. “This transaction enables us to bring our innovative focus to this dynamic environment in a more complete way. As leading shareholders, it is incumbent upon us to lead the charge, and we are looking forward to making a real impact.”
While Hollard reduced its shareholding through the transaction, it retains a significant stake in CTU and will continue to be the entity’s underwriter. Hollard CEO Willie Lategan welcomed the deal, saying “This transaction marks a further milestone in our strategy of driving industry transformation through enabling sustainable participation of black-owned businesses in the financial services sector. As proud partners, we know that Sinayo’s increased interest in the business will enable CTU to take the next important steps on its growth journey, and we look forward to playing our part in making sure that happens.”
CTU CEO Stef Theofanidis, who facilitated the deal, also welcomed the move. “CTU is one of South Africa’s best-kept insurance secrets – it has been crucial in securing industry financing, supporting black SMMEs, and protecting the taxi industry for over 30 years. It’s always been part of the CTU vision to have shareholders that operate within the communities we serve, and it’s exciting that the time is now right for us to act on that. Having established a great relationship with Babalwa over the years, I know that Sinayo will contribute significantly towards continuing and accelerating CTU’s growth trajectory as we become South Africa’s favourite commuter insurance business”.
About Sinayo
Sinayo is a global enterprise proudly owned and led by black women, with its headquarters in the Netherlands and a network of offices worldwide. Founded with a commitment to making a positive global impact, Sinayo is dedicated to shifting the balance and driving change across the globe. The company has investments and capabilities in various sectors, including stockbroking, asset management, short-term insurance, scrip lending, private equity, sports travel and hospitality and renewable energy.
Driven by a vision of touching lives globally by being gamechangers, Sinayo’s mission is to harness human potential through innovation which generates tangible impact.
About CTU
Clarendon Transport Underwriting Managers, now known as CTU, was formed in 1991, primarily to cater to the growing insurance needs of the taxi industry in South Africa. Since then, the company has gone from strength to strength and today is one of the largest and most trusted providers of insurance to the wider commuter transportation industry.
The product offering now includes Bus, e-Hailing, Metered Taxi, Scholar and Staff transport, Shuttle Service and Tourism transport portfolios.
The underwriting manager understands the dynamics of the commuter transport industry and is constantly looking for ways to improve its products and services, as well as introduce new products into the market.
CTU is committed to enabling a respected and safe commuter transport community that is sustainable for all, working in collaboration with its national network of brokers and Taxi and Bus Associations.
