26 June 2017
The partnership between Sanlam and EGL, the second largest life insurance company in Ghana, started in 2005 when Sanlam acquired 100% of African Life. In 2010, Sanlam and Enterprise Group entered into a joint partnership to establish Enterprise Trustees Limited, in which Sanlam held 40%. In an effort to expand its general insurance footprint, Sanlam also acquired a 40% shareholding in Enterprise Insurance Company (EIC), one of the largest general insurance companies in Ghana, in October 2014.
EGL made a significant contribution to SEM’s growth over the years. In 2016 the Ghanaian company’s new business volumes reached ZAR281 million, its contribution to value of new business was ZAR53 million and it posted a net operating profit of ZAR105 million.
With SEM as a strategic partner in both the EGL and SAHAM Finances, the parties agreed for SEM to exit EGL. This will enable EGL to meet its aspirations for regional expansion. Sanlam will, however, maintain a presence in Ghana through its partnership with Saham Finances.
Says SEM’s Chief Executive Officer, Mr Junior Ngulube: “In the 12 years since the establishment of our partnership with EGL, we have enjoyed a mutually beneficial relationship. Going forward, Sanlam is committed to the West Africa region and through our partnership with Morocco-based SAHAM Finances, in which we hold a 46% stake, we retain a presence in Ghana. In line with our growth strategy, we will in future seek appropriate, value-accretive opportunities to further entrench our presence in the Ghanaian market.”
The Sanlam Group believes that the Ghanaian market offers a significant opportunity in the region and it will continue to explore these opportunities and future partnerships to develop and grow its business presence in Ghana. It will also retain its indirect presence in Ghana through SAHAM Finances.