Sanlam plans to acquire up to 100% of the shares of Assupol Holdings (Assupol), through a scheme of arrangement, with a fallback general offer to Assupol shareholders for a purchase consideration of around R6,5 billion.
The proposed deal will see Assupol become part of Sanlam’s retail mass cluster and together with Sanlam Sky, Safrican and the Capitec JV, it will place Sanlam in a strong position to service the financial services needs of South Africans.
Sanlam’s retail mass cluster CEO Bongani Madikiza would ensure that Assupol received the support it needed to flourish in the Sanlam Group. Assupol would continue to operate with its own brand and identity and separate management team.
Assupol would continue to operate with its own brand and identity and separate management team.
Madikiza would oversee the coordination of the various retail mass businesses within the group as well as make sure they share intellectual property, best practice, and work collectively to maximise Sanlam’s position in the market.
Assupol was established in 1913 as a burial society for members of the then South African Police.
The company has grown into a fully-fledged life insurer, serving those who serve, and leading with innovative products and services.
Assupol provides affordable products tailored for focused markets. The company provides funeral, life, savings and retirement products and services to South Africans from every walk of life.
For its latest financial year to June 30, 2023, Assupol reported an embedded value of over R7bn, gross insurance premium revenue of over R5bn and a solvency cover ratio of 179%.
Sanlam Group CEO Paul Hanratty said in a statement: “The proposed acquisition will allow us to strengthen our fortress South Africa strategy and signifies Sanlam’s commitment to further long-term investment in South Africa. “
He said it placed Sanlam in a strong competitive position in the retail mass segment of the South African market. Given the envisaged synergies, Sanlam was confident the acquisition would deliver accretive value for stakeholders, he added.
“Assupol has always been a stable company, generating great value for shareholders and all its stakeholders. We believe this acquisition by Sanlam will bring even greater opportunities for growth and success. It will not only strengthen our position in the market, but also enhance our ability to provide exceptional value to our clients,” Assupol chairman Dr Reuel Khoza said.