Sanlam announces resilient 2017 financial results and a major acquisition in Africa

March 9, 2018

 

The Sanlam Group released its financial results for the year ended 31 December 2017, which reflects a resilient operational performance underpinned by good progress across all of the Group’s strategic pillars. This follows a decade of double-digit average growth rates in most key performance indicators.

 

The Group also announced today that it has reached an agreement to purchase the remaining 53.37% shareholding in SAHAM Finances for USD1 050 million. The transaction is subject to the fulfilment of a number of conditions precedent, including, among others, various regulatory approvals.

 

Following the conclusion of this transaction, the Sanlam Group, which celebrates its centenary this year, will own 100% of SAHAM Finances, firming its position as the largest non-banking financial services group in Africa. Sanlam and its general insurance subsidiary, Santam, first acquired a joint 30% stake in SAHAM Finances in February 2016 and a further 16.6% in May 2017. Santam is evaluating its options with respect to the current transaction but remains fully committed to and supportive of the partnership and will confirm the extent of its participation before the transaction becomes effective.

 

SAHAM Finances 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 Group Chief Executive Officer, Mr Ian Kirk, said: “The acquisition of the remaining 53% of SAHAM Finances, which increases our shareholding to 100% in the Group, is the next logical step for Sanlam and enables us to have an even more meaningful presence across sub-Saharan and North Africa, in line with our strategy. 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.”

 

Mr Kirk ad