SANLAM LIMITED - Sanlam concludes agreement to acquire 49% of Pacific and Orient Insurance Co. Berhad

Sanlam concludes agreement to acquire 49% of Pacific and Orient Insurance Co. Berhad

SANLAM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1959/001562/06)
JSE share code: SLM
NSX share code: SLA
ISIN: ZAE000070660
(“Sanlam”)

Sanlam concludes agreement to acquire 49% of Pacific and Orient Insurance Co. Berhad

South Africa based financial services group, Sanlam is pleased to announce that it has executed all
agreements to acquire a 49% stake in Malaysian short term insurer Pacific & Orient Insurance Co.
Berhad (POI) (the transaction) following recent approval by Bank Negara Malaysia and the
Malaysian Minister of Finance to continue with the transaction. The completion of the transaction
is subject to the fulfilment of certain conditions, including the approval for the transaction by the
shareholders of POI’s holding company Pacific & Orient Berhard (P&O). The purchase
consideration for the 49% stake in POI is Malaysian Ringgit (MYR) 270 million (approximately R760
million).

The transaction is in line with Sanlam’s stated strategy to pursue profitable growth opportunities
in selected emerging markets and represents Sanlam’s first step into the important South East
Asia region.

Established in 1972, POI is wholly owned by P&O, which is listed on Main Board of the Bursa
Malaysian Securities Berhad. POI’s business is predominantly focused on motorcycle insurance
and the company has an approximate 40% market share in this segment, making it the largest
motorcycle insurer in Malaysia. The country relies heavily on motorcycles as a mode of transport
with approximately one motorcycle for every three people. New motorcycles sales are projected
to grow by 10% per annum until 2015.#

Says Sanlam Emerging Markets Chief Executive, Mr Heinie Werth: “We are excited to partner with
the POI team and look forward to exploring future growth opportunities together. This transaction
is our first foray into the South East Asia region. We believe that this transaction will provide us
with a platform to gain an understanding of the region and a footprint on which to expand.
“POI is an established entity with a robust business model and a strong market position.
Motorcycle dealers deem it important to have a good insurance provider and it is compulsory for
motorcycles to have insurance. This is supported by an extensive distribution network. We are
confident that the company offers us a relatively low risk entry into the market and a platform for
growth.”

POI has performed well over time due to its strong management team. In 2011, the company grew
its profit after tax by 36% to Malaysian Ringgit 57 million (or approximately R160 million at the
current exchange rate) and increased net underwriting margins to above 10%. Sanlam believes
that the Malaysian business environment, where the regulator is encouraging international
partnerships for local companies, will contribute to growth.

POI’s current management team will continue managing the business with Sanlam seconding staff
to POI over time.

In recent years, the Malaysian economy has grown steadily, recording stronger than expected
growth in the past two years. Real GDP grew 7.2% in 2010, 5.1% in 2011 and is forecast to be
approximately 4% per annum up to 2015. Inflation ranged between 2.5% to 3.5% during the same
period.

Malaysia’s total gross non-life insurance premiums were around US$5.0 billion in 2011 and grew
by 12% (in dollar terms)*. Motor products, including motorcycles, account for 47% of the
conventional non-life insurance market^. The country has a high ratio of number of motorcycles
per person at 31.4%.**

Chan Thye Seng, Managing Director and Chief Executive Officer said: “We look forward to the
partnership with Sanlam and the technical expertise that they will add in exploring future growth
opportunities.”

#    Source: Business Monitor International (BMI) – Malaysia Autos Report

*    Source: Swiss Re, Sigma (World Insurance Report)

^    Source: Insurance Services Malaysia Berhard (ISM)

**   United Nations ESCAP


ENDS


Bellville
10 December 2012

Sponsor
Deutsche Securities (SA) Proprietary Limited

ABOUT SANLAM GROUP
Sanlam is a leading financial services group listed on the JSE Securities Exchange and the Namibian
Stock Exchange. The South Africa based Sanlam Group conducts its business through Sanlam
Limited, the corporate head office and four business clusters – Retail (South Africa), Emerging
Markets, Investments and General Insurance. The Group operates in South Africa, Botswana,
Nigeria, Ghana, Kenya, Tanzania, Zambia, Malawi, Uganda, Namibia, India and the United
Kingdom. It also has offices in the USA and Australia. Sanlam provides financial solutions to
individuals and institutional clients. These solutions include personal financial services such as
estate planning, trusts, personal loans, savings and linked products, investment, asset
management, stock-broking, risk management and capital market activities. Established in 1918 as
a life insurance company, Sanlam has grown into a diversified one-stop financial services group.
For more information about Sanlam, please visit our website at www.sanlam.co.za

ABOUT POI
POI is a non-life insurance company and was established in 1972. It was acquired by P&O in 1995,
and is wholly-owned. P&O has been listed on the Main Board of the Bursa Malaysia Securities
Berhad since 1995. The controlling shareholder, Mr Chan Thye Seng owns 56.4% of the listed
entity.

Issued by Sanlam Group Communication
For further enquiries, please contact Ainsley Moos, Head of Group Communication at Sanlam:
   -   ainsley.moos@sanlam.co.za
   -   +2721 947 5967 or +2783 296 4697

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