Sanlam digging deeper to extract value from emerging markets

Sanlam is digging to extract value from its emerging markets business with the redeployment of CFO Heinie Werth to head the Sanlam Emerging Markets. Photo: David Ritchie/African News Agency (ANA)

Sanlam is digging to extract value from its emerging markets business with the redeployment of CFO Heinie Werth to head the Sanlam Emerging Markets. Photo: David Ritchie/African News Agency (ANA)

Published Jul 25, 2019

Share

Sanlam is digging deep to extract value

from its Africa and emerging markets

business with the redeployment of

chief financial officer Heinie Werth to head the Sanlam Emerging Markets. 

Werth, who was the chief of Sanlam Developing Markets for 10 years until 2016 when he took up his current position, assumed the additional responsibility for the businesses in Lebanon, India and Malaysia this year. The appointments, effective next month, will see current Sanlam Pan Africa (SPA) chief executive Junior Ngulube assume the role of vice chairperson of SPA. 

“This is a positive development, given that they are essentially looking at extracting value from the  Africa

business, particularly after acquisition

of Morroco’s Saham last year,” Karl

Gevers, analyst at Benguela Global

Fund Managers, said. 

Sanlam has to date expanded into

33 African countries through the

acquisition of Saham Finances in a

$1.1 billion (R15.29bn) deal to acquire

the remaining 53.37 percent stake in

the Moroccan insurance firm, which

helped the group cement its presence

in North Africa.

“The geographic spread, size and

complexity of the SEM cluster as well

as the size of the investment we have

made to acquire Saham Finances is

unprecedented within Sanlam and

possibly in the industry. 

“I believe that the combined and

complementary efforts of Heinie and

Junior will assist to take the SEM Cluster, and the Sanlam Group as a whole,

to an unparalleled competitive position,” Sanlam Group chief executive,

Ian Kirk, said.

Gevers said given the growth constraints in the local economy, Sanlam

was prioritising other growth areas

to cushion itself from the local conditions.

“Given the size of Saham, it

requires someone to be focused on

that portfolio because it is a primary

driver for their business from that end.

“They will need to extract value

and Werth’s appointment is a sign that

they are prioritising growth,” Gevers

said. 

Wikus Olivier, currently the executive head: group finance, will act in

the position of interim chief financial

officer with effect from August 1, 2019,

until the group commences a recruitment process to fill the role of group

financial director permanently.

“We will immediately start the process to recruit a new group financial

director and we will inform the market

about our progress in due course,” the

group said.

Sanlam declined 1.28 percent on

the JSE yesterday to close at R75.87.

BUSINESS REPORT 

Related Topics:

sanlam