SANLAM ACQUISITION IN THE UK FURTHER STRENGTHENS I
SANLAM LIMITED -
SANLAM LIMITED
(Registration number 1959/001562/06)
Share code: SLM
ISIN: ZAE 000028262
SANLAM ACQUISITION IN THE UK FURTHER STRENGTHENS INTERNATIONAL CAPACITY
Sanlam Limited today announced the acquisition of Merchant Investors Assurance
Company Ltd (Merchant Investors), a specialist provider of individual pensions
and life products in the UK and owned by the Allianz Group. Subject to
regulatory approval, Merchant Investors will become a subsidiary of the Sanlam
Group"s offshore holding company, Sanlam Netherlands Holding bv.
Sanlam"s total investment will be funded quite comfortably from its existing
offshore cash resources.
Merchant Investors has funds under management (FUM) of approximately GBP1,100m,
with 95% of policyholder liabilities unit-linked, the remainder being
predominantly pension annuity business. Merchant Investors also invested
considerable resources to develop a highly efficient scaleable administration
system.
Sanlam announced a restructuring of its international business in August 2003
and indicated that it would follow a decentralised approach to
internationalisation with each of the clusters in the Group developing and
expanding its own international activities.
Management responsibility for the acquired business will fall under Sanlam Life.
Dr Johan van Zyl, Group CEO of Sanlam says that the new international initiative
is in line with the Groups" strategy of leveraging existing operational
strengths to provide cost effective and relevant product and service offerings
to its clients.
"This acquisition also opens up several other opportunities for Sanlam in the UK
and Merchant Investors will be a catalyst in building the different UK
businesses into a more coherent offering and platform.
"In addition, the potential for cross selling and client sharing also exists
between Merchant Investors" target market and client base, the Sanlam Group"s
high net worth businesses and Santam"s offshore businesses," he said
Lize Lambrechts, CEO of Sanlam Life, said: "One of Sanlam Life"s core strengths
is its competency in the field of policy administration. The acquisition
represents a key step for Sanlam to advance its ambitions to establish new
business initiatives that can leverage off both existing local and acquired
international infrastructure and personnel. We will also explore ways of using
Sanlam Life"s local product development skills to customise certain niche
product offerings that could be distributed through Merchant Investors" UK
insurance licence and utilise Sanlam"s existing international multi manager
proposition as appropriate."
The acquisition is subject to approval by the regulatory authorities. Completion
is expected in December 2003.
7 October 2003
Date: 07/10/2003 11:14:36 AM Supplied by www.sharenet.co.za
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