Sharenet Sites 
Sharenet Sites
Transfer Of The Group Risk And Retail Life Businesses Of Alexander Forbes Life To Sanlam Life
Sanlam Limited
(Incorporated in the Republic of South Africa)
Registration number 1959/001562/06
JSE share code: SLM
A2X share code: SLM
NSX share code: SLA
ISIN: ZAE000070660
(“Sanlam”)
TRANSFER OF THE GROUP RISK AND RETAIL LIFE BUSINESSES OF ALEXANDER
FORBES LIFE TO SANLAM LIFE IN TERMS OF SECTION 50 OF THE INSURANCE ACT
1. Introduction and Rationale
The board of directors of Sanlam is pleased to announce that Sanlam Life Insurance
Limited (“Sanlam Life”), a subsidiary of Sanlam, has entered into an agreement pursuant
to which it will, subject to the fulfilment of certain conditions (including the requisite
approvals of the Prudential Authority), acquire the group risk and retail life businesses (“AF
Life Book”) of Alexander Forbes Life Limited (“AF Life”) via a transfer of the AF Life Book
from AF Life to Sanlam Life in terms of Section 50 of the Insurance Act for a total
consideration of ZAR100 million (subject to adjustment) (the “Consideration”) (the
“Transaction”).
The Transaction will contribute towards the realisation of Sanlam’s South African growth
strategy by strengthening Sanlam Life’s position in the group risk and retail life insurance
markets. The Transaction is expected to deliver capital synergies by integrating the AF Life
Book into the Sanlam Life licence and diversifying the portfolio of risks. This integration
process will start after obtaining final approval from all relevant regulatory bodies.
2. Overview of the Transaction
The Consideration will be paid in instalments as follows: 50% at the effective date, 25% at
the first anniversary of the effective date and a further 25% at the second anniversary of
the effective date, based on achievement of agreed metrics. The Transaction will be funded
from Sanlam Life’s existing cash resources.
Agreed policy liabilities, assets, reinsurance contracts, business and binder contracts of the
AF Life Book will transfer to Sanlam Life.
The Transaction is subject to the fulfilment of certain conditions including (but not limited
to) AF Life shareholder, regulatory and competition authority approval and certain
counterparty consents.
3. Financial information of the Transaction
AF Life is an entity focused on group risk and retail life business. As at March 2021, the
entity reported R966 million and R37 million in gross written premium for its group risk book
and retail life book of business respectively. The Transaction will add approximately 630
employers and 210,000 members to the group risk business of Sanlam Life and 3,700
policies to the retail book of Sanlam Life.
4. JSE Listings Requirements categorisation
The Transaction is not a categorised transaction for Sanlam in terms of the Listings
Requirements of the JSE Limited. This announcement is accordingly released on a
voluntary basis.
5. Effective Date
The effective date will be dependent on the fulfilment of the conditions to which the
Transaction is subject, including regulatory approvals, and is expected to occur
immediately after these approvals are obtained.
Bellville
14 June 2021
Enquiries
Sanlam Investor Relations
Phone: +27 21 947 8455
E-mail: ir@sanlam.co.za
Transaction Sponsor to Sanlam
The Standard Bank of South Africa Limited
Legal Advisers to Sanlam
Glyn Marais Incorporated
Date: 14-06-2021 08:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
