Acquisition to strengthen Sanlam's relationship with key insurance player in Ghana

Sanlam Emerging Markets (SEM) announced that it has acquired a 40% shareholding in one of the largest general insurance companies in Ghana, Enterprise Insurance Company (EIC) for approximately ZAR 240 million. The transaction remains subject to regulatory approval in Ghana.

Over the past decade Sanlam has established a strong relationship with Enterprise Group, which is listed on the Ghana Stock Exchange. The Group has four operating companies, namely Enterprise Insurance (general insurance), Enterprise Life (life insurance), Enterprise Trustees (pension fund administration) and Enterprise Properties (property development). Sanlam already has a 49% stake in Enterprise Life as well as a 40% stake in Enterprise Trustees.

EIC is mainly involved in motor insurance, fire and accident products in the personal and commercial business lines.

Heinie Werth, Chief Executive of SEM says: “This deal solidifies our partnership with the country’s largest independent insurer. The transaction presents a unique opportunity to increase our economic interest in a rapidly growing and underpenetrated insurance market. Current insurance penetration in Ghana is around 1.1%, while the insurance market has grown at an average rate of 26% per annum over the past five years. The investment diversifies our financial services interests in Ghana to also include general insurance lines like motor and household insurance”.

Trevor Trefgarne, Chairman of Enterprise Group, says: “Enterprise Group sees this further strengthening of its partnership with the Sanlam Group as an exciting moment in its history. The transaction brings together two great financial services players with nearly 200 years of doing business in Africa, and holds much promise for the future of both Groups”.

Sanlam Emerging Markets has operations in countries across the continent including Botswana, Namibia, Malawi, Kenya, Tanzania, Rwanda, Zambia, Ghana, Nigeria, Uganda and Swaziland.
This acquisition is in line with Sanlam’s strategic intent of broadening its footprint on the African continent by partnering with leading players with local market knowledge and a strong brand and distribution network, whilst supporting it with Sanlam’s technical expertise.