Sanlam: Deal nets 40% of Ghana insurer’s unit

SANLAM has acquired a 40 percent stake in a unit of Ghana’s Enterprise Insurance Company for about R240 million in its latest move to expand in fast-growing sub-Saharan African markets. It had acquired the stake in Enterprise’s non-life insurance business, South Africa’s biggest life insurer by market value said on Wednesday. The deal remained subject to regulatory approval in Ghana, Sanlam added. Sanlam owns 49 percent of Enterprise’s life insurance business and 40 percent of its pension fund administration arm. Chief executive Johan van Zyl said last month Sanlam had R3.3 billion set aside for expansion in India and Africa, adding it was looking for possible acquisitions in Ghana and Kenya. South African firms are looking to tap the rising middle class in sub-Saharan Africa to offset slower growth at home. Market penetration for insurers in Ghana was 1.1 percent, Sanlam said, adding the market had grown at an annual average of 26 percent in the past five years. Sanlam has operations in at least 10 other African countries, including Nigeria, the continent’s top economy. Its shares fell 0.92 percent to close at R64.36 yesterday. – Reuters