Sanlam set to gobble up Assupol for R6.5bn to maximise market position

Assupol is set to become part of Sanlam’s retail mass cluster in a proposed R6.5-billion buyout. 

Sanlam’s retail mass cluster chief executive officer, Bongani Madikiza, said Assupol would continue to operate with its own brand and identity and a separate management team. Madikiza will oversee the coordination of the retail mass businesses within the group and make sure they share intellectual property and 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 reported an embedded value of more than R7-billion, gross insurance premium revenue of more than R5-billion and a solvency cover ratio of 179% for the year to end June 2023. 

Sanlam Group’s chief executive, Paul Hanratty, said the proposed acquisition would place Sanlam in a strong competitive position in the retail mass segment of the South African market.

The completion of the proposed transaction will be subject to suspensive conditions, including the necessary regulatory approvals.

The SanlamAllianz joint venture, which has been pegged at a combined group equity value of about R35-billion, began operations in September and Sanlam’s Lisp (linked investment service provider) platform, Glacier, took over Absa’s Lisp business in November. The Absa Lisp transaction complements the transaction between Sanlam and Alexforbes’ Lisp business completed last March. 

Both transactions will enhance Sanlam’s competitiveness in providing Lisp services, and offer individual clients an enhanced experience through improved administration, the addition of skilled talent, efficient solutions and user functionality enabled by Glacier’s technological capabilities. DM