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Cape Town - A vision of continued growth and transformation would form an important part of the mission of Santam CEO Ian Kirk when he succeeds Dr Johan van Zyl as CEO of Sanlam [JSE:SLM] at the end of 2015.
Fin24 asked Van Zyl to expand on what could be expected.
“We use the word transformation in two ways,” explained Van Zyl. “Firstly, our client base continues to become increasingly diverse – both within South Africa and in our global business. Therefore, we must also reflect that diversity within Sanlam – that part is key.”
Secondly, he sees Sanlam’s biggest transformation process as being from life insurer to a bigger group focus on all emerging markets.
“So, in a broader sense this is what we are talking about. At present we have still a few people from the Western Cape dominating in the group, but in future we would like to also source a lot of people from our business hubs overseas to be a truly international business with an international culture,” said Van Zyl.
“Sanlam will, therefore be working on putting some ‘missing blocks in place’ to become much more diversified, especially regarding the emerging market space.”
In the past we were mainly a life insurance company focusing on white Afrikaans speaking people.
“We have now expanded into areas like short term insurance, savings and investments, credit and health products and Sanlam is not just focused on the Afrikaans market anymore,” said Van Zyl.
As the group’s interim results show, this diversification has made it much more resilient.
Future plans
Asked what retirement would mean for him, Van Zyl said he already has “some ideas”.
“I have a big farm and I have some ideas of what to do in business. We can talk again at the end of next year. But for now I am still fully committed to Sanlam and our goal to grow the business by 15% next year,” he said.
Regarding Kirk, Van Zyl said the main aim was to do what is best for Sanlam. “Ian has had a good career so far, he has built up good contacts, he knows the Sanlam group and has done well for us and can handle the challenges,” said Van Zyl.
As for the search for a new CEO for Santam [JSE:STN] to take over from Kirk, Van Zyl said the process will start shortly.
“Santam is the market leader in South Africa and has expanded quite a bit. The new CEO would have to have some technical understanding of short term insurance, it is a quick business,” said Van Zyl.
“And, although there has been a lot of inroads from direct insurers, Santam is still an intermediator business and that support and rapport is a critical aspect. The independent board will look both inside and outside Santam and get the best person for the job.”
He said it is not set in stone to find a new CEO for Santam by the time Kirk leaves and the search period could be extended if it has to.
- Fin24
