The transaction with EIC, one of the largest general insurance companies in the West African nation, is for approximately 240 million rand and remains subject to regulatory approval in Ghana.
“This deal solidifies our partnership with the country’s largest independent insurer. The transaction presents a unique opportunity to increase our economic interest in a rapidly growing and underpenetrated insurance market,” said SEM chief executive, Heinie Werth.
“The insurance market has grown at an average rate of 26 per cent per annum over the past five years. The investment diversifies our financial services interests in Ghana to also include general insurance lines like motor and household insurance.”
(READ MORE: Sanlam’s strategy leads to 44% earnings growth)
According to [DATA SLM:Sanlam], the acquisition is also in line with the group’s strategic intent of broadening its footprint on the African continent.
This would be achieved by partnering with leading players with local market knowledge and a strong brand and distribution network, whilst supporting it with Sanlam’s technical expertise.
SEM, a business cluster of Sanlam, has operations in countries across the continent including Botswana, Namibia, Malawi, Kenya, Tanzania, Rwanda, Zambia, Ghana, Nigeria, Uganda and Swaziland.
(READ MORE: Sanlam penetrates Rwanda’s insurance market)
Trevor Trefgarne, chairman of Enterprise Group, said, “Enterprise Group sees this further strengthening of its partnership with the Sanlam Group as an exciting moment in its history.”
“The transaction brings together two great financial services players with nearly 200 years of doing business in Africa, and holds much promise for the future of both groups,” he added.
Enterprise Group, which is listed on the Ghana Stock Exchange, operates in four divisions – general insurance, life insurance, pension fund administration and property development.