Sanlam and Shriram shuffle assets in India

In a reshaping of its
interest in India, South Africa’s second-largest life insurer,
Sanlam, is to sell its 26% stakes in Shriram Life Insurance and
Shriram General Insurance to its joint venture partner, Shriram
Capital.

The sales were prompted by
Sanlam’s pending acquisition of a 26% direct stake in Shriram
Capital, a move that would have increased its stakes in the two
insurance ventures to over the 26% maximum foreign interest
permitted in Indian insurers.

While the sell prices of
Shriram Life and Shriram General have not been disclosed, Sanlam
has announced that its investment in Shriram Capital will amount to
INR12.44bn ($235m).

Sanlam CEO Johan van Zyl
commented that switching from the insurance ventures to Shriram
Capital is in line with Sanlam’s strategy of diversifying across a
broader range of financial services.

In addition to the two
insurance companies, Shriram Capital is active in asset financing,
stock broking, asset management and consumer finance.

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