Paul Hanratty, chief executive of Sanlam Group, has stepped down as a non-executive director of AfroCentric Investment Corporation, ending his three-year tenure on the board of the Johannesburg-listed healthcare investment group.

AfroCentric informed shareholders on November 2, 2026, that Paul Hanratty’s resignation took effect on October 31. The company thanked him for his contribution during his tenure and wished him well in his future endeavours.

Paul Hanratty joined AfroCentric’s board on June 15, 2023, following Sanlam’s acquisition of a controlling interest in the healthcare group. His departure comes as Sanlam advances plans to consolidate its interests in the South African insurance market through a proposed $1.2 billion buyout of minority shareholders in Santam.

Sanlam’s controlling interest in AfroCentric

Sanlam acquired a 60% shareholding in AfroCentric in 2023, strengthening its presence in healthcare alongside its established financial planning, insurance, investment, retirement and wealth management businesses.

The relationship dates to December 2015, when Sanlam acquired a 28.7% interest in ACT Healthcare Assets, an AfroCentric subsidiary holding the group’s healthcare operations. Under the 2023 transaction, Sanlam transferred that interest to AfroCentric in exchange for an equivalent 28.7% shareholding in the listed investment company, subsequently securing majority ownership.

The acquisition gave Sanlam access to AfroCentric’s healthcare platform, including Medscheme, its medical scheme administration business, and its pharmaceutical operations. AfroCentric was subsequently integrated into Sanlam’s Corporate cluster, with the broader partnership intended to combine the healthcare group’s capabilities with Sanlam’s distribution network.

AfroCentric faces restructuring challenges

Paul Hanratty’s exit follows a difficult period for AfroCentric. In mid-September 2026, Sanlam wrote down the value of its 60% investment in the healthcare group to nil, three years after acquiring control.

Paul Hanratty said AfroCentric remained an excellent business but acknowledged that it needed to reduce its cost base to sustainable levels. He identified the loss of the Bonitas contract as a significant setback and pointed to execution challenges surrounding the group’s rightsizing exercise.

AfroCentric is chaired by Anna Mokgokong, while Gerald van Wyk serves as chief executive, responsible for the company’s day-to-day operations. Hanratty served as a non-executive director representing Sanlam’s controlling interest.

Healthcare operations underpin the business

AfroCentric operates across medical scheme administration, pharmaceuticals and healthcare services. Its principal subsidiary, Medscheme, administers medical schemes by processing claims, managing healthcare benefits, negotiating provider rates and handling member services.

The group also manufactures, wholesales and retails pharmaceutical products, including medicines and multivitamins, while providing wellness and occupational health programmes to employers.

Sanlam’s proposed acquisition of Santam’s remaining shares represents another significant step in its South African insurance strategy. Under an implementation agreement signed on October 5, 2026, Sanlam Life offered R505 per Santam share, representing a 26.6% premium to the insurer’s October 2 closing price. The proposed all-cash transaction is intended to take the general insurer private, subject to the required approvals and implementation conditions.