Sanlam finally announces Lion Assurance acquisition deal

Kampala, Uganda | JULIUS BUSINGE | On Nov. 21, Sanlam Emerging Markets Proprietary Limited (SEM) announced that its subsidiary, Sanlam General Insurance Uganda Limited (SGIU), had successfully concluded the acquisition of close to a 100% interest in the share capital of Lion Assurance Company Limited (LAC) in Uganda, from Trans Industries Proprietary Limited and some minority shareholders for an initial purchase price of US$6.5 million. LAC was one of the over 20 insurance companies in Uganda offering business mainly in motor, financial (loan protection and fidelity guarantee), personal accident and fire insurance. SGIU, which offers a broad range of general insurance products for personal, commercial and corporate clients, has a 5% market share. While addressing the media in Kampala, SEM’s 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,” Ngulube said. Officials said they had put in place a post merger specialist team to help in managing challenges related to such transactions in the areas of human resource, information technology, asset management, finance reporting among others.