Insurers' different takes on tactics
OMEM and Sanlam seek growth in emerging markets
Old Mutual Emerging Markets (OMEM) will have to play catch-up with rivals such as Sanlam once the business is hived off from parent Old Mutual. Many local insurers have placed a greater focus on their emerging- market strategies, with a particularly strong emphasis on the African market. Sanlam, Old Mutual's closest rival by market capitalisation, has been on an aggressive acquisition drive in emerging markets. The companies have chosen different strategies for these regions and some analysts feel Old Mutual could learn from Sanlam's approach. "Sanlam prefers to purchase stakes in existing business, maintain their branding and leverage off what those businesses have already done, thereby staying very close to what made the business successful to start with," said Nishlen Govender, an investment analyst at Citadel. This allowed Sanlam to benefit from African growth while not disrupting a business and its client base, said Govender. Sanlam now holds a 30% stake in Morocco's Saham Insu...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.