By Our Reporter
South Africa’s Sanlam Emerging Markets Proprietary Limited (SEM), through its subsidiary, Sanlam General Insurance Uganda Limited (SGIU), has bought out Lion Assurance Company Limited (LAC), a leading insurance company in Uganda.
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It has acquired close to a 100% interest in the share capital of Lion Assurance Company Limited in Uganda from Trans Industries Proprietary Limited and certain minority shareholders for an initial purchase price of USD6.5 million.
SGIU, which offers a broad range of general insurance products for both personal, commercial and corporate clients, has some 5% market share. It will merge its businesses with LAC, thereby increasing its overall market share in the general insurance industry.
“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,” says Junior Ngulube, SEM’s Chief Executive Officer
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.
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, Mr 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 largest insurer 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.”