According to Sanlam Personal Finance (SPF) Deputy CEO Hennie de Villiers all due diligence processes have been finalised and completion of the transaction is dependent on when final regulatory approvals are granted. The transaction price depends on the date of completion, but is expected not to exceed R707 million (assuming that the transaction is approved and completed in the first half of this year).
De Villiers says the acquisition is in line with Sanlam’s strategy to seek profitable and sustainable growth opportunities and is testimony to Sanlam’s commitment to invest in South Africa.
Under the agreement, Sanlam and BrightRock will continue to function as independent businesses, retaining their own brands, life insurance licences and management teams.
“We believe BrightRock has established a strong and credible presence in the South African market and presents a valuable proposition to people’s insurance needs”, says De Villiers.
“In particular, the company’s innovative needs-matched life insurance offering supports Sanlam’s client-focused philosophy and our strong belief in the value of financial advice by qualified and accredited intermediaries. We believe that the BrightRock offering, together with our Matrix offering to which we introduced significant innovations early in 2016, puts us in an excellent position to meet client needs and further grow our market share.”
BrightRock CEO, Schalk Malan says: “BrightRock is proud to welcome Sanlam as our new majority shareholder. Our business has grown strongly since coming to market five years ago with R148bn cover in force and over R611m API. In Sanlam, we have found a true growth partner with exceptional credentials that is supportive of our aspirations to create a highly differentiated and autonomous financial services business of scale. We’re also pleased that the Lombard Insurance Group, our founding investors that backed BrightRock from inception, will remain shareholders in our business going forward.”
While BrightRock products are currently sold solely through independent brokers, the product range will in future also be available through Sanlam Financial Advisers. Sanlam Broker Distribution will also take the product to market alongside its Matrix offering.
Sanlam and BrightRock will inform the market and interested parties of progress regarding the transaction.