Johannesburg | Sanlam, one of the country’s largest insurance companies, has agreed to purchase Alexander Forbes’ Individual Client Administration operations (the AFICA group) for R200 million. Sanlam will also sell to Alexander Forbes its large stand-alone employee benefits (EB) retirement fund administration business for R154 million.
Sanlam is the largest insurance company in South Africa, the company is headquartered in Cape Town South Africa. Sanlam is listed on the Johannesburg Stock Exchange, the Namibian Stock Exchange and the A2X. Its acquisition of SAHAM in 2018 made it the biggest non-financial services player in Africa.
In a statement presented on Monday the company says acquiring the Alexander Forbes client administration unit will boost Sanlam’s competitiveness in the insurance industry. According to Sanlam, the transaction will benefit both parties because it will provide Alexander Forbes’ individual clients with a modernized customer experience, enhanced administration, and user functionality enabled by Glacier’s technological capabilities.
Sanlam also says this transaction will assist the insurance company to strengthen its position in Africa, and will enable the company to continue providing excellent products for its customers.
“These transactions support Sanlam’s strategy to strengthen our position in South Africa. They will build on the acquisition of Alexander Forbes’ Group Risk business announced earlier this year and allow Sanlam to focus on providing sound advice and excellent products for customers backed by the strongest possible balance sheet. At the same time, our administration clients can continue to look forward to excellent service from Alexander Forbes, whom Sanlam regards as market leaders in this area, said Sanlam’s Group CEO, Mr Paul Hanratty.
Sanlam said it had identified Alexander Forbes as the most suitable buyer for the stand-alone administration operations due to its expertise in fund administration as well as its scale.
Dawie de Villiers, CEO of Alexander Forbes, says they are very excited about the opportunities this transaction will provide for Alexander Forbes. According to Villers, these transactions will also help the company achieve its goal of becoming a nationwide leader in providing financial services to retirement fund members.
Our Board and executive are excited by the opportunities that will be unlocked through the modernised digital capabilities now available to our financial advisers coupled with our larger retirement fund membership base. The Proposed Transactions accelerate our transformation towards becoming the most impactful provider of financial advice to retirement fund members in South Africa.”said Dawie de Villiers