The South Africa-headquartered group made the acquisition announcement in the release of its 2017 financial results on 8 March.
Under the agreement, Sanlam will purchase the remaining 53.37% shareholding in Saham for $1.05bn (€849m, £757m, ZAR12.5bn). This will give the group full ownership of Saham, after it purchased a 30% in February 2016 and a 16.6% in May 2017.
Saham
Saham is one of the largest insurers in Africa and is the market leader in most of the 26 countries in which it operates in North, West and East Africa, as well as in the Middle East. The company owns 58.48% of Saham Assurance Morocco, which is listed on the Casablanca Stock Exchange.
Sanlam chief executive Ian Kirk said the acquisition helps the group fulfil its strategy of being the largest non-banking financial services group in Africa.
“Since our partnership began in 2016, we have developed a number of projects to unlock synergies between Saham Finances and Sanlam.
“Given our footprint, the transaction positions Sanlam as the ‘go to’ financial services provider for multinationals, brokers, banks, other distribution entities as well as a preferred network of partners for international insurers with no African footprint,” Kirk said.
The acquisition of Saham follows several other “bolt-on” acquisitions that Sanlam made in 2017. This includes a 30% stakes in EasyEquities, a controlling stake in PineBridge Investments East Africa, the acquisition of Lion Assurance and a non-controlling interest in Soras Rwanda.
2017 results
New business volumes declined by 1%, amid pressure on single premiums in South Africa, Namibia and Botswana.
Low investor confidence in South Africa had a particularly negative effect, the company said.
Life insurance new business volumes increased by 2%, investment business inflows declined by 5% and general insurance-earned premiums increased by 16%.
A decline in lower-margin single premium business conceals strong growth in the more profitable lines of recurring premium business, the firm said.
