Sanlam makes R6.5bn offer for more than 100-year old Assupol

Africa's largest insurance group, Sanlam, announced on Friday that it's made a R6.5 billion buyout offer for life insurer Assupol, intending to add it to its already-hefty life and savings portfolio.

Assupol was founded in 1913 as a burial society for members of what was then the South African Police. The company has grown into a fully fledged life insurer, with a slogan of "serving those who serve," but it offers insurance and savings products to anyone. It had an embedded value of R7 billion as of its year to end-June 2023, while at the end of that period, Sanlam reported a group embedded value of R61 billion for its covered business.

Embedded value is a measure used to estimate the consolidated value of shareholders' interests, including the present value of future earnings from current business. Assupol has about five million insured lives in SA, Sanlam said.