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BusinessEconomyFinance & ServicesINVESTMENTSanlamSouth Africa

Sanlam and Absa officially partner to form South Africa’s largest black-owned asset manager

by Radarr Africa
written by Radarr Africa

Sanlam and Absa have officially combined their investment businesses to form South Africa’s largest black-owned asset manager. The two companies announced in October 2021 that they were joining forces to create an asset management firm second only to Ninety One in terms of size.

The new company, to be born out of marrying Sanlam Investments and Absa Investments – which comprised Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi-Management – will have assets of more than R1 trillion.

On Thursday, the two firms said they’ve now met all the conditions, allowing them to officially launch the new asset management venture, Sanlam Investment Holdings Proprietary Limited (SIH), on 1 December.

The two combined all their investment management businesses in South Africa. Absa Investments got a stake in SIH. Absa also entered into a 10-year distribution agreement with SIH. This means that the new asset management firm will use both Sanlam and distribution networks, thus reaching significantly more clients than they ever could individually. They also said that doing it as a team of two financial giants will help them bring a more holistic range of investment solutions to the market.

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“Sanlam and Absa clients will gain from the enhanced investment offering. This partnership will allow us to deliver investment solutions that sustain future generations,” said Sanlam Investment Group CEO, Carl Roothman.

He believes that the scale of SIH will position the group as the preferred investment solutions provider in South Africa.

SOURCE: News 24

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BusinessEconomyMarketsMoroccoSanlam

Sanlam Maintains it’s Hold on Moroccan Market, Expands in Africa

by Radarr Africa
written by Radarr Africa

Moroccan insurance provider Sanlam, formerly known as Saham, has said that “Morocco is a key market” for its pan-African operations.

In June, Saham officially changed its name to Sanlam after its largest South African stakeholder boosted its share in the firm to 84.5%, up from 61.7% in 2018. 

In a move that could be interpreted as an attempt to reassure its customer base in Morocco following structural changes, Sanlam took to Linkedin on Tuesday to argue that its presence remains “unrivaled” in the North African country. 

“Morocco serves as the primary hub for our pan-African general insurance operations and our Moroccan subsidiary remains one of the flagship companies of our pan-African business portfolio with an unrivaled presence across the Kingdom,” the post reads. 

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Sanlam further stressed its “long-standing commitment to Morocco,” recalling its confidence in the country’s economy and its mission to “empower current and future generations to be financially confident, secure and prosperous.”

Sanlam Maroc is currently the fourth-largest insurance provider in Morocco, after Wafa Assurance, Royal Maroc Assurance (RMA), and Mutuelle Taamine Chaabi. 

The company reported MAD 3.7 billion ($347.5 million) in turnover at the end of the first half of 2022, marking an 8.3% year-on-year increase.  

Given that Morocco was Africa’s second-largest insurance market in 2020, according to Oxford Business Group, Sanlam’s operations in Morocco are key in sustaining the company’s liquidity and growth plans.  Sanlam currently has 68 subsidiaries in Africa and the Middle East, but it plans to further expand in South Africa. 

On October 11, the insurance firm shared its offer to acquire Afrocentric Investment Corporation in an effort to increase its share in the ACT Healthcare Assets (AHA).  Afrocentric controls 71.3% of the strategic alliance of South African financial institutions. 

SOURCE: Morocco news

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AfricaBusinessSanlamSouthern Africa

Sanlam purchases Afrocentric as it witnesses African expansion

by Radarr Africa
written by Radarr Africa

AfroCentric, a diversified South African healthcare provider, expects that an acquisition by Sanlam will accelerate its expansion into fast-growing yet still underinsured continent.

Sanlam, Africa’s biggest insurer, intends to buy as much as 74.5% of the company, giving the owner of medical administrator Medscheme access to a distribution network that stretches across 33 African countries, as well as India and Malaysia.

“That is something that we’d like to explore further with Sanlam, as well as further market penetration of health care to the continent,” AfroCentric’s Chief Executive Officer Ahmed Banderker said in a phone interview on Tuesday.

The deal involves swapping 28.7% stake in ACT Healthcare Assets – which holds AfroCentric’s businesses including Pharmacy Direct and Activo Health – for an equal share in AfroCentric. Sanlam will then buy 44% of AfroCentric stock from the market.

AfroCentric already has a presence in Namibia and Botswana and will remain listed in South Africa. Its 3.8 million members and the services it offers “at affordable price points” make the company an attractive addition to Sanlam, according to CEO Paul Hanratty.

Source: News 24

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BusinessSanlamSouthern Africa

Sanlam plans to buy large stake in JSE-listed investment group AfroCentric

by Radarr Africa
written by Radarr Africa

Sanlam has made an offer to buy a controlling stake in black-owned JSE-listed investment group AfroCentric, which owns medical aid administrator Medscheme.

Sanlam wants to acquire at minimum 36.6%, or a maximum of 43.9% of AfroCentric shares from its shareholders at R6 per share (or shares in Sanlam). The maximum offer equates to at least R1.4 billion.

As part of the transaction, Sanlam proposes that its stake of almost 29% in ACT Healthcare Assets (AHA) be transferred to AfroCentric in exchange for an equal stake in AfroCentric.

AHA is the holding company of AfroCentric’s assets, including Pharmacy Direct, the country’s biggest pharmacy courier and Medscheme, the second-largest medical aid administrator after Discovery.

If the deal goes through, with various conditions around the minimum and maximum offers, the Sanlam Group will hold no less than 55% and no more than 60% of AfroCentric shares.

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“Through this transaction, Sanlam will be able to integrate Afrocentric’s product offering into its ecosystem, while AfroCentric will gain increased access to the wide Sanlam distribution network,” the two parties said in the joint statement. The companies have been working together for some time.

“AfroCentric’s client base will also benefit from access to the overall Sanlam product offering and vice versa.”

Sanlam’s share price fell almost 2% following the announcement, while AfroCentric share prices surged more than 25% to R5.25 by late morning on Tuesday.

Source: News 24

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BusinessEastern AfricaEconomySanlamUncategorized

Sanlam Kenya narrows half year net loss to Sh287m on lower taxes

by Radarr Africa
written by Radarr Africa

Insurance firm Sanlam Kenya narrowed its net loss to Sh287.7 million in the half year ended June on the back of a lower tax bill and reduced expenses. The company had posted a net loss of Sh291.8 million a year earlier.

Sanlam’s tax expenses collapsed to Sh2.8 million from Sh68.9 million. The company did not disclose the reason for the sharp reduction in its tax bill. Sanlam has recently revised the reserves for claims besides correcting earlier accounting errors which could have an impact on taxes payable.

The insurer’s operating and other expenses declined to Sh1.47 billion from Sh1.79 billion, helping to cut the losses.

The Nairobi Securities Exchange (NSE)-listed firm saw its net earned premiums grow 5.5 percent to Sh4.6 billion from Sh4.3 billion. Net claims meanwhile increased to Sh4.2 billion from Sh4 billion. Investment income dropped by 33.4 percent to Sh1.02 billion.

The fall of share prices on the NSE is part of the factors hurting returns for underwriters with significant exposure to the stock market.

The insurer’s South Africa-based parent firm is creating a joint venture with Allianz SE, a move that could have an impact on their local subsidiaries (Sanlam Kenya and Jubilee Allianz General Insurance Kenya)

Allianz earlier told Business Daily that it will take time to review the fate of its newly acquired local subsidiary Jubilee Allianz under its pan-African partnership with South Africa’s Sanlam Limited.

Allianz Africa regional head of mergers and acquisitions and General Counsel Nandini Wilcke said no decision has yet been reached on how to treat the new company under the 10-year joint venture that will bring together the multinationals’ interests in their local subsidiaries.

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“At the moment Allianz is focused on completing the Allianz acquisition of the majority shareholdings in Tanzania and Mauritius as previously announced, as well as to continuing to strengthen the Jubilee Allianz businesses in Kenya, Uganda and Burundi,” she said recently.

“For now the focus is on business as usual. No decisions have yet been made about the Sanlam or Allianz business operations in Kenya.”

Under the 10-year deal between insurance giants Allianz SE and Sanlam Limited, the latter will own a 60 percent stake in the joint venture while Allianz will hold a 40 percent interest with an option to buy an additional nine percent ownership in the future.

SOURCE: Business daily

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