The deal will take their stake from 30% to 46.6% and is subject to regulatory approval, reported the African News Agency.
The South African financial services group said the transaction was funded from internal cash resources. The effective date of the transaction for Sanlam and its short-term insurance subsidiary, Santam, was 10 May 2017.
SAHAM Finances is one of the largest insurers in Africa with operations in 26 countries across North, West and East Africa as well as in the Middle East, where it is a market leader in most of the countries in which it operates, with a network of 700 branches and more than 3,000 staff.
Sanlam and Santam first acquired a 30% effective stake in SAHAM Finances in February 2016 with Sanlam Emerging Markets holding 75% and Santam 25%.
Following the latest acquisition, Sanlam Emerging Markets will now hold 85% and Santam 15% of the investment in SAHAM Finances.
Sanlam emerging markets chief executive, Junior Ngulube, said this transaction confirmed the Sanlam Group’s commitment towards strengthening the strategic partnership further.
“Having identified strong synergies between the Sanlam and SAHAM Groups, we are committed to unlocking additional collaborations together through our collective skills and network capabilities across Africa,” Ngulube said.
“We believe this holds significant mutual benefits for the two groups and it will also benefit our stakeholders.”
In March, Sanlam reached an agreement to acquire a majority stake in Kenya-based asset manager PineBridge Investments East Africa Limited (PIEAL).