South Africa’s Largest Insurer Extends Deal With Black Billionaire Motsepe

South Africa’s Largest Insurer Extends Deal With Black Billionaire Motsepe

By Renee Bonorchis | From Bloomberg News

Sanlam Ltd., the largest South Africa-based insurer, said it has extended its partnership with Ubuntu-Botho Investments, led by billionaire Patrice Motsepe, for another 10 years to ensure Sanlam has black shareholders.

“Both parties will jointly explore and pursue opportunities of common interest while Sanlam will assist Ubuntu-Botho in its strategy to establish an independent financial services business,” the Cape Town-based insurer said in its annual report, published on Thursday. The Sanlam Ubuntu- Botho Community Development Trust “will now actively contribute to the initiatives of both Sanlam and Ubuntu-Botho Investments aimed at supporting poor and disadvantaged communities,” the insurer said.

Sanlam set up a black empowerment deal 10 years ago, aimed at meeting South African initiatives to boost black ownership after apartheid ended. Motsepe is the richest black person in South Africa with a net worth of $2.1 billion, according to data compiled by Bloomberg. He is executive chairman of African Rainbow Minerals Ltd.

“Sanlam will also continue to benefit from the valued involvement of the Ubuntu-Botho representatives on the Sanlam board,” the insurer said.

Sanlam’s 2014 net income climbed to 8.73 billion rand ($738 million) from 8.1 billion rand a year earlier after new business volumes grew by 18 percent, assets under management increased and underwriting activities expanded, the company said in a statement on Thursday. The dividend rose 13 percent to 2.25 rand per share.