Sanlam allocating more capital to SA


Sanlam allocating more capital to SA


Published Date: 2021-06-15 | Source: INCE|Community | Author: The Finance Ghost

Sanlam allocating more capital to SA

Among the financial services and life houses, Sanlam is arguably the most active in terms of acquisitions and investments.

Just last week, the >R140bn giant released an operational update for the four months to April 2021 that I wrote about right here in InceConnect. If you want to get up to speed with Sanlam's business units, read it here.

The latest news from the group is that Sanlam Life Insurance will acquire the group risk and retail life businesses of Alexander Forbes Life. The book will transfer for a total consideration of R100m, which is subject to further adjustments.

Although Sanlam has business units in numerous emerging markets, including outside of Africa, the group isn't shy to continue investing in South Africa. This transaction is small in the broader Sanlam context, but does help to diversify the portfolio of risks and strengthen its position in the market in South Africa.

Alexander Forbes is executing a core strategy that has no space for insurance. The group is focusing on the likes of pension fund administration, employee benefits and consulting. Alexander Forbes released its annual results yesterday, which I also covered this morning.

The business being acquired by Sanlam has around R1bn in gross written premiums and will bring a further 630 employers and 210,000 members to the group risk business of Sanlam Life, along with 3,700 retail policies.

Sanlam's share price closed 1.3% higher for the day.


Similar Stories