Sanlam, Africa’s largest insurer, is setting its sights on India as it seeks to bolster short-term profits amid sluggish economic growth in its home country, South Africa.
In a recent interview with Bloomberg, Sanlam CEO Paul Hanratty expressed optimism about the potential for significant profit expansion in India over the next decade. Hanratty stated that the Cape Town-based firm could triple the proportion of profit derived from India, identifying the country as a crucial short-term growth catalyst.
“If you ask where our real short-term upside is, it’s India,” remarked Hanratty. He highlighted the robust performance of their business in India, characterizing it as a rapidly expanding outlet for the company.
Sanlam has been in partnership with the Shriram Capital Group in India since 2005. Presently, the Indian market contributes approximately 10% of Sanlam’s profits. The collaboration with Shriram encompasses a listed financing business along with two insurance companies.
The move to deepen its engagement in the Indian market comes against the backdrop of Sanlam’s strategic approach to offset subdued economic conditions in South Africa. By leveraging the growth potential in India, the insurer aims to diversify its profit streams and navigate more favorable avenues for immediate financial gains.
Sanlam’s sustained commitment to the Indian market positions it as a significant player in the region, with expectations of further expansion and increased contributions to the insurer’s overall profitability.
