ACE Group Invests Millions into its SA Operations

August 10 - Benefitting from the steady growth of the South African insurance industry since it first entered the market in 2006, the New York listed ACE Insurance announced that it would be making major investments in its South African operation

The group said that it would be injecting R35 million into the South African unit, focusing on its status as niche insurer in the business-to-business field.

The Chief Executive Officer of ACE, Mike Durek explained that the mainstream market is currently full.

"Niche products, on the other hand, depend on a very specific understanding of the needs of select elements of the market, then more accurately meeting those needs," he said.

"Our growth depends on creating the sort of niche products which find appeal with those specific customers, something which is being achieved and in turn, is driving the requirement for the further injection of capital," he added.

Speaking about the strong growth in the South African market, Durek said: "In the insurance business, the more business you write, the more capital you need to provide for potential claims."

"We're enjoying strong growth despite the competitive nature of insurance in the country and hence required a substantial further investment to support that expansion," he explained.

Founded in Bermuda in 1985, ACE Insurance has operations in over fifty countries around the world.

The group focuses on corporate casualty insurance, property insurance and re-insurance.