MultiChoice realises significant value from NMS Insurance Services sale

MultiChoice’s sale of 60% of its shareholding in NMS Insurance Services (NMSIS) to Sanlam Life Insurance (Sanlam) strengthened its balance sheet by R1.2 billion.

NMSIS is a micro insurer registered to offer both general and life insurance. It was built internally within MultiChoice as part of its financial services division.

It has been selling insurance for the past 20 years under the DStv brand and has been a big success for MultiChoice.

Last year, Sanlam announced plans to buy a 60% stake in MultiChoice’s insurance business, NMSIS, for R1.2 billion.

For the financial year ended 31 March 2024, NMS Insurance Services increased its in-force policies by 19% to 3.3 million.

Life products were introduced three years ago and have experienced substantial growth, accounting for 30% of in-force policies.

For the 2024 financial year, NMSIS reported a net profit of R296 million, representing a 51% increase from the previous year.

In its latest financial results, MultiChoice confirmed that it had sold 60% of its shareholding in NMSIS to Sanlam for R1.2 billion in cash.

There is also a potential additional performance consideration of R300 million, which could increase the purchase consideration to R1.5 billion.

MultiChoice managed to materialise considerable value from its NMSIS investment as it reported a R3 billion post-tax gain on the disposal of its 60% shareholding.

The R3 billion fair value gain is a combination of its R1.5 billion cash sale as well as a fair value adjustment on the remaining 40% shareholding.

The sale of the NMSIS business helped MultiChoice report a net profit for the 2025 financial year, boosting the group’s profitability.