(Bloomberg) -- South Africa’s Competition Commission raided the offices of eight major insurers it is investigating for possible price collusion. 

Discovery Ltd., Old Mutual Insure Ltd. and Sanlam Ltd. are among the companies being probed for possible involvement in collusive practices to fix prices and trading conditions for fees related to investment products such as retirement annuities and premiums on risk-related products.

“The companies under investigation share information on premium rates for risk-related products and fees for investment products, which enables them to adjust the prices,” the antitrust body said in a statement on Thursday. “The search and seizure operations are being conducted as part of an ongoing investigation.”

BrightRock Life, a division of BrightRock Holdings Pty Ltd., Bidvest Life, a unit of Bidvest Group Ltd., Hollard Holdings Pty Ltd., Momentum Metropolitan Holdings and Professional Provident Society Ltd. are also under investigation.

“Discovery became aware of a Competition Commission investigation into the life assurance industry this morning,” the Johannesburg-based company said in a response to questions. “We uphold all of the principles of the Competition Act and are complying with the Commission’s request for data and information.”

Shares in South African insurance companies dropped on the news, before paring their declines. Old Mutual Ltd. shares fell as much as 4.8%, Sanlam declined as much as 5.4%, Momentum dropped 5.1% and Discovery slid 4.6% in Johannesburg trading. Bidvest was 1% lower.

Old Mutual said it’s “co-operating fully” after a “dawn raid”. Momentum also said it’s cooperating fully with the investigation. “We have no reason to believe that we are guilty of price fixing,” the group said. Sanlam said it would communicate developments in due course.

Hollard also confirmed a “search and seize operation” at its Johannesburg offices, on the back of a warrant authorizing the action. PPS said the Competition Commission were at its offices, and that it was “fully cooperating” with the authority. 

 

(Updates with company comments.)

©2022 Bloomberg L.P.