Africa's largest insurance group, Sanlam, has agreed to buy Alexander Forbes’s individual client administration business (Afica) for R200m, and to sell its stand-alone retirement fund administration business to that insurer for R154m.
The two transactions will enhance Sanlam’s competitiveness through increased scale, the insurer said on Monday.
It will also present Alexander Forbes’s individual clients with better experience, Sanlam said, as that insurer’s set of individual client products, covering retirement and savings, will be administered on Sanlam’s Glacier platform.
Sanlam said it had identified Alexander Forbes as the most suitable buyer for the stand-alone administration operations due to its expertise in fund administration as well as its scale.
The business consists of Sanlam’s commercial interests in 44 contracts to provide standalone administration services, including investment portfolio administration and retirement benefits counselling.
The transactions still require regulatory approvals, but are expected to proceed in the first half of 2022.
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