Sanlam’s billion-dollar bet on emerging markets
The $1bn it has put down to take full control of Morocco-based Saham Finances looks uncharacteristically bold
Sanlam’s international expansion has been slow and incremental. At the time of listing 20 years ago, Namibia was its only sizeable life business outside SA. So the $1bn it has put down to take full control of Morocco-based Saham Finances looks uncharacteristically bold. But Sanlam Emerging Markets (SEM) CEO Junior Ngulube says it provides the group with a footprint that competitors will find hard to match. There should be room for growth — even more developed countries such as Morocco and Kenya have a life insurance penetration of less than 1% and little more penetration in general insurance. Combined, Saham and SEM are represented in 33 countries in Africa, and puts it in a strong position for multinationals looking for help with their general insurance, life insurance and reinsurance needs. Ngulube says that not a single person has left either group as a result of the merger, and there was overlap only in three markets. Sanlam is targeting a dollar return of 12% from Saham. As gen...
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