Africa’s largest insurer, Sanlam, bets on India to drive future growth

Sanlam, Africa’s largest insurer linked to South African billionaire Patrice Motsepe, is placing a major bet on India, seeing the world’s most populous country as a key engine for future earnings. The company’s management believes that India could eventually outpace South Africa as Sanlam’s top contributor, reflecting the market’s growing significance.

The disclosure comes as Sanlam reported mixed financial results for 2025. Headline earnings fell 18 percent, weighed down by corporate transactions, structural changes, and weaker investment returns after the rand strengthened. Yet the group’s net result from financial services rose 20 percent to R15.9 billion ($947 million) on a like-for-like basis, helped by higher fee income and solid underwriting performance across its core businesses.

Sanlam targets growth in India

Abigail Mukhuba, Sanlam’s chief financial officer, said in an interview after the annual results announcement that India offers the strongest long-term growth prospects outside Africa. “Geographically, we’re focused on Asia and Africa,” she said, noting that the company organizes its strategy around three regions: South Africa, Pan-Africa, and India.

While South Africa remains a core market, it is relatively mature, with high insurance penetration compared with emerging markets. “The opportunities in India are much larger than in South Africa,” Mukhuba added. Sanlam’s Indian operations already contribute roughly 10 to 15 percent of group earnings, and she expects that share to grow.

Its stake in Shriram Finance Limited (SFL), the listed credit arm of the broader Shriram group, illustrates the potential scale. SFL’s loan book is about R600 billion ($35.7 billion), compared with R5 billion ($298 million) in Sanlam’s South African credit business. “Over the next decade, India could become our largest region, even surpassing South Africa,” Mukhuba said.

Global partnerships drive Sanlam’s strategy

Sanlam’s strategy focuses on building integrated financial services across its three regions, often with local partners. In India, it works with Shriram; in Africa, with Allianz through the Sanlam-Allianz joint venture; and in South Africa, with UB [Ubuntu Botho] linked to Patrice Motsepe. Partnerships help the insurer navigate local markets and leverage expertise.

For 2025, Sanlam posted record new business volumes of R496 billion ($35.5 billion), up 22 percent from 2024. Net client cash flows rose to R127 billion ($7.56 billion), supported by life insurance, living annuities, and better client retention.

Investment results included a R967 million ($57.6 million) unrealized loss on South African government bonds, offset by gains in Sanlam-Allianz, Morocco, and Assupol. Asset-based fees and underwriting results were strong across South Africa, Pan-Africa, and India.