Sanlam

The Suid-Afrikaanse Nasionale Trust en Assuransie Maatskappy 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 Maatskappy 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 33 African countries[11] also India, Malaysia, the UK and Ireland, the USA, Australia and the Philippines.

In 2018, Sanlam concluded its $1.1 billion acquisition of SAHAM Finances.[12] Additionally, the group announced details of its R11 billion BEE deal, which will see it increasing its direct black shareholding to 18% and black economic ownership to 35%.[13]

In December 2021, The Sanlam Group entered into discussions with Allianz for the acquisition of the entire group in Africa except South Africa. Discussions are conducted between the group's headquarters in Bellville and Munich.[14]

In February 2023, South African wills and estates administrator Capital Legacy and Sanlam announced that they would joining forces by creating a wills, estates and trusts business together. The transaction, which is subject to regulatory approval, will see Sanlam Life Insurance Limited (Sanlam Life) sell its trust business, Sanlam Trust, to Capital Legacy and Sanlam Life acquiring a 26% interest in the enlarged Capital Legacy Group that includes the Sanlam Trust business following completion of the transaction. The merged entity will be managed by Capital Legacy.[15][16]

Sanlam has since 1993 contributed to broad-based black economic empowerment (B-BBEE) through the group’s partnership with Ubuntu-Botho Investments.[17]

The Ubuntu-Botho B-BBEE partnership resulted in a broad-based black empowerment consortium buying a 10% shareholding in Sanlam[18] in what was to become one of the most far-reaching black empowerment transactions in South Africa to date.

In December 2013, the initial 10-year contractual period of the transaction with Ubuntu-Botho[19] 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.[20] In 2014, an agreement was reached to extend the partnership with Ubuntu-Botho into the future.[21]

In 2018, Sanlam announced details of BEE transactions, which will increase its direct black shareholding to 18% and black economic ownership to 35%. The Group will sell 5% of its issued shares to new and existing B-BBEE shareholders, creating a master trust that caters to 80% of the intended beneficiaries, with Ubuntu-Botho benefitting from the other 20%.[22]

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:

• Sanlam Personal Finance
• Sanlam Emerging Markets
• Sanlam Investments
• Sanlam Corporate
• Santam

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

• Paul Hanratty, group chief executive officer[29]
• Anton Gildenhuys, chief executive officer: SA Retail Affluent
• Tavaziva Madzinga, chief executive officer: Santam Limited
• Bongani Madikiza, chief executive officer: SA Retail Mass
• Sydney Mbhele, group executive: Sanlam Brand
• Jeanett Modise, chief executive: human resources
• Kanyisa Mkhize, chief executive officer: Sanlam corporate
• Wikus Olivier, group executive: strategy
• Robert Roux, chief executive officer: Sanlam Investment Group
• Karl Socikwa, group executive: market development
• Jurie Strydom, chief executive officer: life and savings
• Heinie Werth, chief executive officer: Sanlam emerging markets, executive director
• Mlondolozi Mahlangeni, chief risk officer, chief actuary
• Abigail Mukhuba, financial director

Sanlam reported a 22% growth in new business volumes to R100 billion in the six months to June 2015,[30] compared to the same period in 2014. The net result from financial services climbed by 5% in the first half of 2014, and by 11% when certain one-time factors are excluded. The annualised RoGEV per share of 13% exceeded the aim of 12.1%. The group's principal performance target for measuring shareholder value creation is RoGEV.

Ian Kirk was appointed as group chief executive[31] 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[32] 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.[33]

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.[34]

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 life insurance, general insurance, investments, health insurance, retirement, financial planning and advice.[35]

In February 2023 Capital Legacy and Sanlam announced that they would be joining forces by creating an even more compelling wills, estates and trusts business together.[36][37][38]

• Economy of South Africa