The Hollard Group is to acquire South African insurer Etana Insurance and become “a major force” in the South African industry.

Hollard already has a 40% share of Etana, which has tripled in size since it was formed in 2007.

The two companies’ combined premium income from short-term insurance operations was more than R10.6 billion ($1.14 billion) in the year to last June 30.

Together they will employ 1700 people, with all Etana staff retained.

“By joining forces we will create greater choice and enhance innovation in commercial and corporate insurance,” Hollard Group CEO Nic Kohler said.

Etana Chairman Paolo Cavalieri says the move allows his group to continue growing.

“By teaming up with Hollard we are able to leverage the strengths of both groups to create an even more compelling proposition for brokers and clients.”

The transaction is subject to regulatory and competition commission approval.