Sanlam increases stakes in two Indian insurance companies

South African financial services group, Sanlam has acquired bigger stakes in two Indian insurance companies, following recent regulatory changes that allow up to 49% foreign shareholding in insurance companies in the country.

Sanlam increases stakes in two Indian insurance companies

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Sanlam has acquired a further direct 23% stake in Shriram Life Insurance Company, as well as a further direct 23% stake in Shriram General Insurance Company.

Financial details were not disclosed.

Established partnership

Sanlam has been in partnership with Shriram Group since 2005 for life insurance, via Shriram Life, and since 2008 for short-term insurance, via Shriram General.

In 2012, Sanlam invested a further INR2bn (£23.7m, $29.5m, €27.4m) in Shriram Capital Limited (SCL), the holding company for Shriram Group’s financial services interests.

Following the investment, Sanlam held a 26% stake in SCL through its subsidiary Sanlam Emerging Markets (SEM).

Indian growth

The driver for the recent investment was Sanlam’s belief that Shriram Group is well positioned for growth in the Indian market. 

SEM’s chief executive, Junior Ngulube, said: “This acquisition is in line with SEM’s commitment to drive growth opportunities in both current and new markets, focusing on existing partners in emerging markets that offer a good distribution capability and have a strong local brand.”

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