Sanlam Life Insurance, a subsidiary of Sanlam, a leading insurer partly controlled by Africa’s first Black billionaire, Patrice Motsepe, has received approval from the Competition Tribunal for its R6.5 billion ($365 million) acquisition of Assupol Holdings. This approval, which comes with an employment-related stipulation, signifies a step forward in Sanlam’s strategic expansion.
Sanlam plans to complete its acquisition by October 2024, which was first announced in February. Assupol’s integration into Sanlam’s retail mass cluster, which comprises Sanlam Sky, Safrican, and a joint venture with Capitec, intends to improve the company’s financial services capabilities in South Africa.
This purchase comes after Bidvest Proprietary Limited and the International Finance Corporation (IFC), which own 46.02 percent and 19.41 percent of Assupol, respectively, indicated their desire to exit after a decade of investing. Both parties have agreed to approve the resolutions required to carry out the arrangement’s scheme, allowing Sanlam to acquire the business.
After the transaction is completed, Sanlam will have complete control of Assupol, marking a significant shift in South Africa’s insurance business. Sanlam, which was formed in 1918 and has a market valuation of more than $10.1 billion on the Johannesburg Stock Exchange, is a household name in the financial industry. Patrice Motsepe, Africa’s first Black billionaire, owns a 7.8 percent stake in Sanlam through his investment company, Ubuntu-Botho Investments, and serves as its deputy chairman.
Sanlam Life, a wholly owned subsidiary of Sanlam Limited, which is publicly traded on the Johannesburg, Namibian, and A2X stock exchanges, offers a diverse variety of financial services. These include life and non-life insurance, financial planning, retirement solutions, investing, and wealth management. The company is present in Africa, India, Malaysia, and other regions. Sanlam recently created a $1.9 billion joint venture with Allianz SE to boost its African operations.
Assupol, traded on the Cape Town Stock Exchange, reported strong financial performance for the fiscal year ending June 30, 2023. The company’s embedded value surpassed R7 billion ($393.8 million), gross insurance premiums exceeded R5 billion ($281.4 million), and the solvency cover ratio was 179 percent.
Assupol’s subsidiaries, Assupol Life and Assupol Investment, provide insurance and investment solutions to clients in South Africa. The acquisition will improve Sanlam’s presence in the South African insurance sector, allowing it to better satisfy the continent’s financial needs.
