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.