LONDON, Feb. 13, 2001 (PRIMEZONE) -- The Transnet Retirement Fund, established on Nov. 1, 2000, has appointed Old Mutual Employee Benefits to insure the group life and disability benefits of the fund. Around 73 000 employees will be covered under this arrangement.
According to Trevor Pascoe, Old Mutual Employee Benefits Divisional Manager (Group Assurance), Transnet's decision to insure its group life and disability benefits will be of significant benefit to both parties.
"Old Mutual will increase annual premium flows for group risk business by more than R150 million and benefits to Transnet include the sharing of risks associated with insuring a large group of diverse employees, ultimately enabling more stable expense management into the future."
The deal will give Transnet Retirement Fund access to Old Mutual's risk management expertise, which includes up-to-date AIDS research and modeling, thereby facilitating timeous benefit structuring decisions.
"In addition, through outsourcing the insurance of the disability benefits to Old Mutual, Transnet can offer employees an objective, best of breed disability assessment practice.
"We are excited at the prospect of working in partnership with a client as large and diverse as Transnet. The potential that can be unlocked by the largest provider of transport services working together with the largest life assurer in South Africa should add significant value to all parties concerned," said Pascoe.