Sanlam expands Ghana presence with $240m deal

Johannesburg - Sanlam [JSE:SLM] has acquired a 40% stake in a unit of Ghana's Enterprise Insurance Company for about R240m, in its latest move to expand in fast-growing sub-Saharan markets.

Sanlam has acquired the stake in Enterprise's non-life insurance business, it said in a statement on Wednesday, one of the biggest in the West African country.

The deal remains subject to regulatory approval in Ghana, Sanlam added.

Sanlam, South Africa's top insurer by market value, already owns 49% of Enterprise's life insurance business and 40% of its pension fund administration arm.

CEO Johan van Zyl told Reuters last month the insurer has R3.3bn set aside for expansion in India and Africa, adding it was looking for possible acquisitions in both Ghana and Kenya.

South African firms are looking to tap the rising middle class in sub-Saharan Africa to offset slower growth in the continent's most developed economy.

Market penetration for insurers in Ghana is 1.1%, Sanlam said, adding the market has grown at an annual average of 26% over the past five years.

Sanlam has operations at least 10 other African countries, including Nigeria.