Double win for South Africa’s biggest insurer

South Africa’s largest insurer, Sanlam, has finalised its transaction to take over Assupol and received the green light from the competition commission to acquire a stake in MultiChoice’s insurance business.

In February, Sanlam announced, through its wholly-owned subsidiary Sanlam Life Insurance, that it is intends to buy a 100% shareholding in Assupol Holdings Limited for R6.5 billion.

The board of directors of Sanlam has told shareholders that all Scheme Conditions Precedent have been fulfilled and the transaction was successfully implemented on the Scheme Implementation date of 7 October 2024.

“Assupol represents a strong strategic fit within the Sanlam Group and will be integrated into the Retail.
Mass business in South Africa,” said Sanlam.

“The retail mass segment is a strategic priority for Sanlam, and we are committed to providing significant focus and support to ensure sustained growth in this market.”

Sanlam previously said that no changes to either company’s operations are expected following the takeover. The Assupol brand, which is recognised by four million lives insured in South Africa, will be preserved.

The transaction follows the announcement last year that Budvest Proprietary Limited (Budvest), which holds 46.02% of Assupol’s securities, and the International Finance Corporation (IFC), which holds 19.41% of Assupol, wanted to dispose of their shareholdings.

MultiChoice deal

In other news for Sanlam, the group received approval from the Competition Commission to purchase a 60% stake in MultiChoice’s insurance business, NMS Insurance Services (NMSIS).

NMSIS is a micro-insurance provider offering MultiChoice’s DStv customers insurance products, funeral cover

According to MyBroadband, the Commission approved the acquisition without conditions, arguing that it was unlikely to lessen or prevent competition in any market substantially.

The deal, which was announced in June, will see Sanlam pay R1.2 billion cash upfront, with a potential performance-based cash earn-out of up to R1.5 billion.

The earn-out is contingent on the gross written premium generated by NMSIS for the financial year ending 31 December 2026.

Other deals on the table

Sanlam also plans to buy a 25% stake in the company that controls Tymebank.

Sanlam’s Life plans to acquire the stake in African Rainbow Capital Financial Services Holdings, which controls African Rainbow Capital Investments Ltd.’s holdings in TymeBank, AI Fund, CrossFin Holdings and Ooba, in a deal valued at R3.9 billion.

Sanlam is set to pay R2.413 billion in cash and swap its 25% shareholding in African Rainbow Capital Financial Services Investments—valued at R1.5 billion—for an equivalent number of shares in the investment holding company.

Coenraad Jonker, Tymebank’s chairman and former CEO, previously said the company is valued at nearly $1 billion (roughly R17.50 billion).

Billionaire Patrice Motsepe is Sanlam’s deputy chairman and African Rainbow Capital Investments founder.

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