Sanlam readying for R2bn Africa acquisitions
Fin24

Sanlam readying for R2bn Africa acquisitions

2015-03-05 12:47

Johannesburg - Sanlam [JSE:SLM] is working on acquisitions worth over R2bn in the rest of Africa and other emerging markets, its chief executive said on Thursday.

These incremental acquisitions, which are in various stages of completion, would be funded from a R3.3bn war chest set aside for expansion this year, chief executive officer Johan van Zyl told the Reuters Africa Investment Summit.

READ: Lack of trust big headache for insurance

"South Africa is fairly mature and very competitive and the real opportunity lies outside of our borders to the north," Van Zyl told the summit.

"Insurance penetration is quite low in Africa and the margins are fairly high because we don't get the same kind of competition we get in South Africa."

Sanlam has been bulking up its presence in Africa, where rapid economic growth has increased the number of people with money to spend on insurance to protect their wealth.

The company operates in 10 African countries including oil-rich Ghana and Africa's biggest economy, Nigeria. Those operations contribute about 11% to its annual sales.

Van Zyl, who is due to step down this year after 12 years at the helm, said his company was aiming for closer to 20% contribution from those operations over the next five years.

Sanlam also reported a 3% increase in annual headline earnings to 411.6 cents per share, stock exchange filings showed.

WATCH CEO Johan van Zyl on results.

Comments
  • Naas Viljoen - 2015-03-05 14:00

    The ANC must be furious - this is money they are not in a position to steal. Also, no cadres will get bribe moneys for the transactions.

  • WollieVerstege - 2015-03-05 15:11

    So freakin glad I bought shares in this company when it was trading at R10 :D

      Assis Pontes - 2015-03-05 16:57

      It's a blue chip.

  • Zahir - 2015-03-05 22:42

    What about giving some of that money back to the policy holders who are not happy with investments

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