Sanlam spreads its wings in India | Fin24
 
  • Credit Rating

    'I think Moody's will be happy' - President Ramaphosa says plan to deal with Eskom's debt is imminent.

  • 'No Basis in Fact'

    The PIC commission has slammed Iqbal Survé’s claims about Minister Pravin Gordhan.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Sanlam spreads its wings in India

Nov 16 2016 18:29
Lameez Omarjee


Company Data

Sanlam Limited [JSE:SLM]

Last traded 79
Change 1
% Change 1
Cumulative volume 2596579
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

South Africa’s top asset managers: Former boutiques now nation’s biggest, best

What to do in tough economic times

Mind the life cover gap

Bidvest Insurance expands with new acquisitions

Discovery launches wellness programme in Japan

How to save thousands on life insurance - SA millionaire

 

Cape Town – Financial services group Sanlam has increased its stake to 49% in Indian insurance company Shriram Life and Shriram General.

In a statement the company explained that due to regulatory changes, allowing a 49% foreign shareholding in insurance companies in India, it was able to increase its direct stake by 23%.

Sanlam currently holds a 26% stake in Shriram Capital Limited (SCL) through Sanlam Emerging Markets (SEM). Shriram is a leading financial services group in India, with stakes in credit and insurance businesses.

“Given the market opportunity and diversification benefit, it was always our intention to increase our stake pending the change in regulations for increased foreign shareholding,” the group stated in an emailed response to Fin24.

“This acquisition is in line with SEM’s commitment to drive growth opportunities in both current and new markets,” stated Junior Ngulube, chief executive officer of SEM.

India presents an "exciting market" for the group, which sees "positive opportunities" for growth over the longer term. Currently the GDP growth rate is at 7.6%, making India one of the fastest growing economies in the world.

The insurance penetration in India at 3.4% is low, relative to the world average of 6.2%. “In India, we would like to have a significant presence which gives us further geographic diversification in an economy that is not correlated to the African economies we are active in.”

The Sanlam and Shriram partnership dates back to 2005. Sanlam plans to continue strengthening its position in emerging markets. “We shall continue to look at markets where we believe there is potential for long term growth."

The group also explained that its presence in South East Asia provides "future optionality and diversification benefits".

"At this time, we have no aspirations to go to into the more developed traditional markets of Europe and North America."

Read Fin24's top stories trending on Twitter:

sanlam  |  personal finance  |  life insurance  |  investment
NEXT ON FIN24X

 
 
 
 

Company Snapshot

#MINIBUDGET2019

Struggling power utility Eskom will take centre stage at this year's mini budget
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...