Sanlam concludes acquisition of Absa Consultants and Actuaries

05 April 2018 Sanlam

Sanlam Life Insurance Limited (Sanlam) is pleased to announce that it has concluded the transaction to acquire 100% of the shares in Absa Consultants and Actuaries Proprietary Limited (ACA), having fulfilled all of the conditions precedent including, among others, approvals from the Competition Tribunal and the Financial Services Board.

Sanlam announced in 2017 that it would acquire ACA for a consideration of R285 million from Absa Financial Services Limited. ACA houses the entire employee benefits offering of the Absa Group and provides consulting (asset, actuarial, health and benefit) and administration to retirement funds in the South African retirement fund market.

Says Sanlam Employee Benefits’ Chief Executive, Mr Dawie de Villiers: “We believe the partnership with ACA will add value to Sanlam’s business and to all our stakeholders because of the company’s management and professional expertise, its credibility and its significant operations in both the private and umbrella fund markets. This is yet another milestone in our 100-year history and we look forward to welcoming the ACA team to the Wealthsmiths™ family.”

ACA has a substantial book of stand-alone funds as well as a commercial umbrella fund and has in total 119 retirement funds with 339 614 members (active and inactive) and assets of approximately R84 billion under administration.

“We are delighted that this transaction has been approved by the regulators. Sanlam has in-depth knowledge of the employee benefits market, and we are satisfied that our clients and ACA colleagues are in good hands. It was always our intention to ensure a smooth transition and continued service to our clients,” says Marcel de Klerk, Managing Executive for ACA at Absa Financial Services.

As announced in October, ACA will continue to fulfil its contractual obligations to its clients as normal prior to and after the transaction is concluded. Following the conclusion of the sale, ACA and Sanlam have entered into a transitional services agreement. This transitional services agreement will ensure an orderly handover and minimise any possible disruption.

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