Sanlam’s R1.2 Billion Acquisition Spurs MultiChoice’s 51% Profit Surge

  • Sanlam acquires 60% stake in MultiChoice's insurance business for R1.2 billion upfront and potential R1.5 billion earn-out.
  • MultiChoice gains access to Sanlam's financial expertise, resources, and expands its market reach.
  • NMSIS shows robust growth with 19% policy increase, 36% GWP rise, and 51% profit boost.

Sanlam Life Insurance Limited will acquire 60% of MultiChoice Group’s insurance business. This deal is valued at R1.2 billion upfront, with potential additional performance-based earnings of up to R1.5 billion by 2026.

Transaction Details

Key Figures

Upfront Cash ConsiderationR1.2 billion
Performance-Based Earn-OutUp to R1.5 billion
Pre-Acquisition DividendR59.0 million
NMSIS Policies Growth (FY24)19%
In-Force Policies (FY24)3.3 million
GWP Increase (FY24)36%
Profit After Tax Increase51%
NMSIS Net Asset Value (FY24)R277 million

Sanlam will acquire its stake from MultiChoice’s subsidiary, NMS Insurance Services (SA) Limited (NMSIS). The transaction also includes a long-term commercial arrangement between the two companies.

Strategic Rationale

MultiChoice’s Perspective

MultiChoice aims to broaden its ecosystem of tech-enabled consumer services. The collaboration with Sanlam provides essential resources, expertise, and technology. This will support NMSIS’s growth ambitions across Africa.

Sanlam’s Perspective

Sanlam sees this acquisition as a step towards enhancing its financial services offering in Africa. By leveraging MultiChoice’s extensive subscriber base, Sanlam aims to expand its market presence and drive financial inclusion.

Business Impact

MultiChoice’s Benefits

MultiChoice retains a 40% interest in NMSIS and the broader commercial venture with Sanlam. This allows them to continue benefiting from the growth potential of their insurance business. MultiChoice also gains access to Sanlam’s financial services resources and expertise across Africa.

Sanlam’s Benefits

Sanlam will enhance its insurance offerings across Africa, utilizing MultiChoice’s platform for cost-effective marketing. The deal aligns with Sanlam’s strategy to use technology for expanding financial services access. Sanlam’s extensive African presence and financial services capabilities will be crucial for this expansion.

Financial Performance of NMSIS

NMSIS has shown robust growth, with in-force policies increasing by 19% to 3.3 million for the financial year ending 31 March 2024. Life insurance products now account for 30% of in-force policies. Gross written premiums (GWP) rose by 36% year-on-year to R970 million, and profit after tax increased by 51% to R296 million.

Application of Proceeds

The proceeds from the transaction will be used by MultiChoice for working capital purposes. This infusion of capital will help MultiChoice support its ongoing business operations and strategic initiatives.

Effective Date and Conditions

The transaction will become effective on the last day of the month after the fulfillment of all suspensive conditions. These conditions include regulatory approvals from South African authorities, expected by 31 January 2025.

Terms and Regulatory Compliance

Exit Mechanisms

The shareholders’ agreement includes exit mechanisms, exercisable under certain circumstances. These mechanisms have capped monetary amounts payable by either party.

Shareholder Approvals

The transaction is classified as a Category 2 transaction under JSE Listings Requirements. Therefore, it does not require shareholder approval.


The acquisition by Sanlam Life of a 60% stake in MultiChoice’s insurance business marks a significant development in the African financial services sector. This deal highlights the potential for strategic collaborations to drive growth and innovation across the continent.

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