End of a 108-year era for South Africa’s biggest insurer

Sanlam, Santam, and Sanlam Life have entered into an agreement that will see South Africa’s biggest insurer make an offer to Santam shareholders for all of the company’s shares.

For R505 per share, Sanlam is hoping to acquire 100% of Santam and make it a wholly owned subsidiary.

Sanlam is already the majority shareholder in Santam, with a 62.7% shareholding as at 18 September 2026.

On Monday, 5 October, Sanlam announced that it has reached an agreement with the other parties to acquire the remaining 37.3% from Santam shareholders and Sanlam Life.

Santam is currently listed on the JSE with a market capitalisation of R54.67 billion at a share price of R474.87.

While a large company, this pales in comparison to Sanlam, which has a market cap of R170.55 billion.

This acquisition, if approved, will mark the start of a new era for these two companies, which have always been closely intertwined.

Both companies were established in 1918 in Cape Town, aiming to promote economic empowerment and financial self-reliance among Afrikaners.

Santam was registered first, in March 1918, as a short-term insurer and trust company, with Sanlam spun off in June that year to handle long-term life assurance.

Therefore, at inception, Santam was the parent company holding the majority of the shares in Sanlam.

However, as Sanlam’s life insurance operations grew rapidly, they started to outpace Santam’s short-term operations in terms of assets and market capitalisation.

Thus, in 1954, the group reversed its ownership structure, with Sanlam acquiring the majority stake in Santam.

When both companies were listed on the JSE in the late 1990s, the group formally divided its operational pillars.

Sanlam became the overarching parent holding entity, holding 60% of Santam, which was listed as a separate company on the JSE.

Now, the two companies are set to reunite after 108 years of separation.

Should Sanlam’s acquisition be approved by all the requisite entities, Santam will be delisted from the JSE and become an unlisted subsidiary.

The acquisition will be done through a scheme of arrangement whereby Sanlam Life will acquire the Santam shares from existing shareholders.

In announcing the proposed deal, the two companies explained that they share a long-standing commercial partnership spanning more than a century.

“Over time, this relationship has evolved into a strong collaboration, with Sanlam supporting Santam’s position as the leading general insurer in the South African market,” it said. 

“The proposed transaction represents a natural next step in this relationship by fully consolidating Sanlam’s ownership of Santam.”

The insurer explained that the enlarged, simplified Sanlam Group structure will be better positioned to leverage its combined expertise and seize emerging market growth opportunities. 

“Full ownership goes beyond what the current controlling-shareholder structure can deliver by removing the structural constraints associated with a separate listing,” it said.

The acquisition, Sanlam said, will also unlock the full strategic and capital flexibility of the combined group while capturing the minority economic interest that still accrues outside the group.

“The proposed transaction is anticipated to create meaningful value for Sanlam, Santam and the enlarged Sanlam Group,” it said.