Sanlam Emerging Markets Proprietary Limited (SEM) on November 21 announced that it had successfully concluded the transaction whereby its subsidiary, Sanlam General Insurance Uganda Limited (SGIU), acquired close to 100% interest in the share capital of Lion Assurance Company Limited (LAC) in Uganda from Trans Industries Proprietary Limited and certain minority shareholders for an initial purchase price of USD6.5 million (about Shs23.6bn).
LAC is a leading insurance company in Uganda with its business mainly in motor, financial (loan protection and fidelity guarantee), personal accident and fire insurance.
SGIU, which offers a broad range of general insurance products for personal, commercial and corporate clients, has about 5% market share.
It will merge its businesses with LAC, thereby increasing its overall market share in the general insurance industry.
SEM’s Chief Executive Officer, Junior Ngulube says: “Uganda is a key market in Africa and the transaction supports SEM’s strategy of bolt-on acquisitions to achieve scale.
“We are also confident that this transaction will offer us an opportunity to strengthen our position in the market while benefiting our clients who will have access to the combined expertise of our staff as well our product range,” Ngulube added.
It has been revealed that following the successful conclusion of the transaction, LAC will be rebranded to SGIU in line with the Sanlam Group’s aim of strengthening its identity and expanding its visibility in Uganda and in East Africa, where it also has a presence in Kenya, Rwanda and Tanzania.
Sanlam believes a robust brand contributes to stronger business performance which ultimately benefits employees, clients, shareholders and all stakeholders.
Its brand is expressed through the pay-off line, Wealthsmiths™, which is a simple description of what Sanlam does and believes in.
“This represents our roll-up-your-sleeves, pragmatic approach to doing things. It is our ethos, and our appreciation for the raw materials we work with – our clients’ money. We have a deep understanding that wealth does not come easy – it comes from hard work and dedication and we take our role in this process extremely seriously,” Ngulube explained.
What It Means To Clients
Going forward, LAC will renew all existing client policies under the Sanlam brand. In addition, LAC client policies will be managed by SGIU who will administer claims, organise any changes to existing policies and provide cover for any new requirements that existing LAC clients may have.
Commenting on the transaction, SGIU’s Chief Executive Officer, Gary Corbit said: “This is an exciting development for all stakeholders. Policy holders will have the same or better policy terms and conditions. On the other hand, staff will have the training and development opportunities that the larges tinsurer in Africa, Sanlam, can provide. The overall market can be assured that Sanlam will continue to offer innovative and customer-centric solutions for all insurance and wealth development requirements.”