Sanlam

Sanlam Limited
Public company
Traded as JSE: SLM
Industry Insurance
Banking
Asset management
Founded 1918[1]
Headquarters Cape Town, South Africa[2]
Key people
 Ian Kirk (CEO)
Kobus Möller (Financial Director)
Desmond Smith (Chairman)[3]
Revenue $6.311 billion (2015)
Number of employees
 ~13 000 (2015)
Website www.sanlam.co.za

Sanlam is a South African financial services group headquartered in Cape Town,[2] and listed on the Johannesburg Stock Exchange and the Namibian Stock Exchange.

Established in 1918 as a life insurance company,[4] Sanlam Group has developed over time into a diversified financial services business. Through its business clusters – Sanlam Personal Finance, Sanlam Emerging Markets, Sanlam Investments, Sanlam Corporate and Santam – the group provides financial solutions to individual and institutional clients across all market segments.

The group’s areas of expertise include insurance, financial planning, retirement, trusts, wills, short-term insurance, asset management, risk management and capital market activities, investment and wealth. The group operates in South Africa, Namibia, Botswana, Swaziland, Malawi, Zambia, Tanzania, Rwanda, Uganda, Kenya, Ghana, Nigeria, Mozambique, India, Malaysia and the UK and has business interests in the USA, Australia and the Philippines. It has a stake in leading global micro-insurance specialists, UK-based Micro-Ensure Holdings Limited, which has a footprint across Africa [5] and India servicing more than 10 million enrolled clients.

History

The Suid-Afrikaanse Nasionale Trust en Assuransie Maatskappij Beperk (South African National Trust and Assurance Company Limited), Santam, was registered on 28 March 1918. It was then decided to convert the life assurance department into a separate company, and the Suid-Afrikaanse Nasionale Lewens Assuransie Maatskappij Beperk (South African National Life Assurance Company Limited), Sanlam, was registered on 8 June 1918. Sanlam, the subsidiary, later became the spearhead of the operation, while Santam remained focused on short-term insurance.

Sanlam showed a small profit at the end of its first year, declared a bonus, and continued to grow consistently from there.

Santam remained the controlling shareholder until 1954 when Sanlam became an independent mutual life assurance company, as well as the largest single shareholder in Santam.

Over the years, Sanlam's focus gradually shifted from traditional life insurance to providing a broader range of financial products and services. In 1998 Sanlam demutualised, listing on the Johannesburg Stock Exchange (JSE) Ltd and the Namibian Stock Exchange. This changed Sanlam from a mutual entity into a public company with a share capital, namely Sanlam Life Insurance Ltd. At the same time a separate company, Sanlam Ltd, was installed as the parent company of the Sanlam group of businesses. The group was also restructured into several independent businesses within a federal business structure.

Today, Sanlam is a diversified financial services provider with an extensive product offering catering for all market segments. The group has consistently grown its local as well as an international footprint – it now has a presence in 12 African countries outside South Africa,[5] India, Malaysia, the UK and Ireland, the USA, Australia and the Philippines.

Economic Empowerment

Sanlam has since 1993 focused on empowering a broad base of South Africans. It has contributed to broad-based black economic empowerment (B-BBEE) through the group’s partnership with Ubuntu-Botho Investments,[6] numerous empowerment deals via a range of initiatives, Sanlam Sky Solutions (which is focused on creating access to financial services at the lower end of the market), and initiatives run by the Sanlam Foundation. Further economic value is added through procurement of services and enterprise development initiatives.

The Ubuntu-Botho B-BBEE partnership resulted in a broad-based black empowerment consortium buying a 10% shareholding in Sanlam [7] in what was to become one of the most far-reaching black empowerment transactions in South Africa to date. The deal brought together various stakeholders that would empower people, organisations and small businesses at even the most rural level, through access to capital and business expertise.

In December 2013, the initial 10-year contractual period of the transaction with Ubuntu-Botho ended, with a final total of 66.5 million deferred shares qualifying for conversion to ordinary shares. The deal created value of about R15 billion, making it arguably one of the most successful transactions of its kind in South African history. In 2014, an agreement was reached to extend the partnership with Ubuntu-Botho into the future.

Operations

The corporate office of the Sanlam Group is responsible for centralised functions that include strategic direction, group financial and risk management, group marketing and communications, group human resources and information technology, group sustainability management, corporate social investment and general group services.

In addition, the Sanlam group operations are managed through five operating clusters:

The core businesses within each cluster are as follows (wholly owned unless otherwise indicated):

Sanlam Personal Finance

Strategic business development consists of the following diversified financial services: Sanlam Trust (estate and trust services), Multi-Data (electronic money-transfer activities), Sanlam Healthcare Management (medical scheme administration services), Sanlam Personal Loans (70%) (personal loans joint venture), Reality (loyalty programme) and Anglo African Finance (55%) (trade and bridging finance).

Sanlam Emerging Markets

Retail and group life insurance and related business:

Credit and banking:

Investment management:

General insurance: Jointly responsible in partnership with Santam for managing general insurance business through:

Sanlam Investments[10]

Asset management

Multi-Management

Alternative Investments

Passive Investments

Capital Management:[12]

Employee Benefits

Wealth Management

International Investments

Sanlam Corporate

Sanlam Corporate offers corporate clients a comprehensive employee benefits solution, including life, health and general insurance, financial planning and advice.

Santam

Sanlam has an effective 60% interest in Santam, which in turn operates through the following businesses:

Senior management[15]

Recent news

For the six months to June 2015,[18] Sanlam reported an increase in new business volumes of 22% to R100 billion compared to the same period in 2014. The net result from financial services increased by 5% on the first half of 2014; up 11% excluding certain one-off items. The annualised Return on Group Equity Value (RoGEV) per share of 13% exceeded the target of 12.1%. RoGEV is the group’s primary performance target for measuring shareholder value creation.

Ian Kirk was appointed as Group Chief Executive[19] and Executive Director of Sanlam Limited and Sanlam Life Insurance Limited from 1 July 2015. This follows the retirement of former Group Chief Executive Dr Johan van Zyl from this position, as well as from the boards of Sanlam Limited[20] and Sanlam Life Insurance Ltd.

In November 2015 Sanlam announced that the group had agreed to buy a 30 percent stake in Morocco-based Saham Finances, which operates in 26 countries predominantly across Africa with a presence in the Middle East. The US$375 million deal will significantly expand the group's African footprint.[21]

Former CEO, Dr Johan van Zyl, joined the Sanlam Limited and Sanlam Life Insurance Limited Boards as a non-executive director and representative of Ubuntu-Botho Investment Holdings, Sanlam’s black economic empowerment partner as of 18 January 2016.[22]

A new business cluster known as Sanlam Corporate was created early in 2016. The unit will be headed by the former CEO of Munich Re sub-Saharan Africa, Junior John Ngulube and will offer corporate clients a holistic solution including life insurance, general insurance, investments, health insurance, retirement, financial planning and advice.[23]

See also

References

  1. ↑ "About". Sanlam. Retrieved 2016-07-28.
  2. 1 2 "Contact Us". Sanlam. Retrieved 2016-07-28.
  3. ↑ Sanlam Limited: Who we are, retrieved 10 July 2010
  4. ↑ "Sanlam - Hot or Not". CNBCAfrica.com. Retrieved 2015-11-18.
  5. 1 2 "Mozambican insurer changes name to Sanlam Seguro de Vida | Macauhub English". Macauhub English. Retrieved 2015-10-30.
  6. ↑ "Ubuntu-Botho/Sanlam BEE deal". Financial Mail. Retrieved 2015-10-19.
  7. ↑ "BRIEF-Santam sells 76 pct of Indwe to UBI and Sanlam". Reuters. 2015-09-30. Retrieved 2015-10-30.
  8. ↑ "BIHL goes on a shopping spree | Botswana Gazette". www.gazettebw.com. Retrieved 2015-10-30.
  9. ↑ "Sanlam to unlock insurance potential". www.dailynews.co.tz. Retrieved 2015-11-18.
  10. ↑ "Sanlam Investment Management (Pty) Ltd.: Private Company Information - Businessweek". Businessweek.com. Retrieved 2015-10-30.
  11. ↑ "How to start investing in Satrix". Fin24. Retrieved 2015-10-30.
  12. ↑ "Sanlam Capital Markets Limited: Private Company Information - Businessweek". Businessweek.com. Retrieved 2015-10-30.
  13. ↑ "Santam buys the rest of MiWay". Moneyweb. Retrieved 2015-10-30.
  14. ↑ "Professionals: Short-term » Press Room > Santam acquires 100% shareholding in Centriq". www.insurancegateway.co.za. Retrieved 2015-10-30.
  15. ↑ "SANLAM LTD (SLM:Johannesburg Stock Exchange): Board of Directors - Businessweek". Businessweek.com. Retrieved 2015-10-30.
  16. ↑ "Van der Merwe steps down as Sanlam boss". Business Day Live. Retrieved 2016-05-06.
  17. ↑ "BRIEF-Sanlam appoints CEO of corporate business unit". Reuters India. Retrieved 2016-05-06.
  18. ↑ "2015 Interim Results" (PDF). www.sanlam.co.za. Retrieved 2015-10-15.
  19. ↑ "Sanlam names insider Ian Kirk as CEO". Business Day Live. Retrieved 2015-10-15.
  20. ↑ "SLM:Johannesburg Stock Quote - Sanlam Ltd". Bloomberg.com. Retrieved 2015-10-27.
  21. ↑ eNCA. "Sanlam Group's Africa expansion | eNCA". www.enca.com. Retrieved 2016-02-16.
  22. ↑ "Sanlam appoints Munich Re exec to head up new unit". Moneyweb. Retrieved 2016-02-16.
  23. ↑ "Cluster deepens black leadership on Sanlam executive". Business Day Live. Retrieved 2016-02-16.
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