South African financial services giant Sanlam has completed its 100% takeover of the Rwandan insurance company, Soras Assurance, and its merger with the insurance unit Saham Assurance.
Sanlam entered the Rwandan insurance market in 2014, by buying a 63% stake in Soras through Saham, which is part of the Sanlam group. It purchased the remaining 37% in 2018. This year, Sanlam merged Soras and Saham Assurance Rwanda after acquiring 100% of Morocco-headquartered Saham Finances last year, reported The New Times. Saham Assurance started operations in Rwanda in 2014 whereas Soras has roots in Rwanda since 1984.
Mr Junior Ngulube, CEO of Sanlam Pan Africa, said that the company Sanlam fully entering Rwanda was motivated by the country's political and investment climate.
“It is not a surprise international companies like Volkswagen and Mara Phones are doing business in Rwanda because there is a good investment climate, which is an example for African businesses that Africa is our playing field,” Mr Ngulube said.
The merged group has units which operate under the names Sanlam General Rwanda and Sanlam Life Rwanda. It has a market share of about 80% in terms of gross premiums written in life insurance business and a 21% market share in non-life business.
Following the mergers of both the life and non-life units, the number of insurance companies in Rwanda stands at 12.