On 3 April 2019 Alexander Forbes Group Holdings (the group) announced its intention to sell Alexander Forbes Life Limited (AF Life) as part of its strategy to focus on its core retirements, savings and investments business.
Today the group announced it has reached agreement on the sale of the group risk and retail life businesses of AF Life to Sanlam Life Insurance Limited, a wholly owned subsidiary of Sanlam Limited for a consideration of R100 million. The transaction is subject to various conditions precedent.
Both AF Life and Sanlam are committed to a high quality of service to their clients and brokers and will ensure that the transition between the respective insurers is well managed and communicated. The transaction also allows for the transfer of the majority of AF Life employees, which ensures communication channels and levels of service to clients remain largely unaffected.
Dawie de Villiers, Alexander Forbes Chief Executive, says: “The sale of AF Life is in line with our strategy to focus on our core advice-led business and be capital light. The agreement with Sanlam Life follows a rigorous, impartial and transparent process and we are pleased with the outcome.
“The transaction balances appropriate solutions for AF Life clients, ensuring both a seamless transition for AF Life employees to Sanlam Life Insurance Limited and benefits to our shareholders. Sanlam is equally committed to delivering on the financial well-being the clients and employees who are moving across in this transaction,” says Dawie.
Sanlam Group CEO Paul Hanratty said, “Sanlam’s strategy aims to deepen client relationships and better client experiences while offering a compelling and differentiated employee value proposition. We look forward to welcoming the AF Life clients and employees to Sanlam. This transaction supports our strategy of building a fortress position in South Africa and will diversify Sanlam’s pool of life insurance risks.”