Cape Town - Brimstone Investment Corporation and Commlife Holdings will increase their combined stake in Lion of Africa Insurance Company to 65 percent for R6 million in cash.
They will acquire the 15 percent stake from Santam, whose holding in the company will be diluted to 35 percent.
Lion of Africa has an A rating by Global Credit Rating Company and underwrites large corporations and metro municipalities.
It was formed in 1999 as a true start-up operation and employs 73 people in three offices throughout South Africa.
Staff numbers would be increased and additional space rented to deal with the heavier administrative workload, Fred Robertson, the chairman, said yesterday.
Robertson said Lion of Africa was an empowerment success story and the deal came on the company's fifth anniversary, reinforcing its position as the only viable empowerment player in the short-term insurance sector.