Sanlam takes over Lion Assurance

Announcement. Left to right: Sanlam General Insurance Uganda CEO Gary Corbit, SEM regional executive Julius Magabe and Sanlam emerging markets CEO Junior Ngulube address the media at Kampala Serena Hotel on Tuesday. COURTESY PHOTO

What you need to know:

  • Boost. This increases Sanlam’s overall market share in the general insurance industry to 5 per cent.

Kampala.

South African financial services firm Sanlam General Insurance Uganda (SGIU) Limited has taken over Lion Assurance Company Limited (LAC) Uganda.
The deal which was sealed on Tuesday saw Sanlam General Insurance Uganda acquire almost 100 per cent of interest in the share capital of LAC from Trans Industries Proprietary Limited and some minority shareholders, for an initial purchase price of $6.5m (Shs23.7b).
Sanlam General Insurance Uganda’s acquisition of Lion Assurance Company Limited increases its overall market share in the general insurance industry to 5 per cent.
Commenting on the transaction, Sanlam General Insurance Uganda chief executive officer Gary Corbit said: “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.”
He added: “The overall market can be assured that Sanlam will continue to offer innovative and customer-centric solutions for all insurance and wealth development requirements.”
While addressing the media, Sanlam’s parent company Sanlam Emerging Markets Proprietary Limited (SEM) chief executive officer Junior Ngulube said: “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,” Mr Ngulube added.
Following the 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.