Ninety One and Sanlam Forge Strategic Partnership to Shape South Africa’s Financial Future

In a significant development for South Africa’s financial sector, two industry giants, Ninety One and Sanlam, have detailed their groundbreaking strategic partnership. This collaboration will see Ninety One become the primary active asset manager for Sanlam, positioning both companies to dominate the local and global investment management landscape.

A Game-Changing Partnership

Ninety One, the country’s largest asset manager by assets under management, and Sanlam, South Africa’s largest insurer, announced their partnership in November 2024. The two companies signed a binding Framework Agreement (FWA) that paves the way for a long-term strategic relationship, with Ninety One taking center stage as Sanlam’s primary asset manager for both local and global products.

This partnership offers Ninety One preferred access to Sanlam’s extensive South African distribution network, creating exciting new opportunities for growth and collaboration. The FWA sets the foundation for a 15-year relationship, encompassing the terms for Ninety One’s role as asset manager for Sanlam Life and Sanlam Developing Markets Limited’s balance sheet assets.

Significant Shareholding and Equity Stake

As part of the agreement, Sanlam will acquire around 125 million shares in Ninety One, representing an 8.9% effective equity stake in the company. This transaction is a milestone for both firms, offering Sanlam a meaningful share in Ninety One’s future growth. The share allocation among Sanlam Group entities includes SIH, Sanlam Life, and SI UK.

However, it is important to note that the South African and UK transactions involved in the partnership are not inter-conditional. Both transactions are subject to specific regulatory approvals and suspensive conditions. The South African transaction has a long stop date of March 31, 2026, while the UK transaction is set to close by August 15, 2025.

Sanlam’s Strong Financial Performance

This partnership comes at a time when Sanlam is experiencing impressive financial growth. The company has posted strong financial results for 2024, reporting a 14% increase in net results from financial services (NRFFS) to R14.1 billion. The growth was driven by strong organic performance across life insurance, general insurance, and investment management sectors.

Sanlam also posted higher net operational earnings of R17.2 billion, reflecting a 24% increase from the previous year. The impressive results were supported by solid investment returns and reduced corporate project expenses. In addition, Sanlam declared a final gross cash dividend of 445 cents per share, marking an 11% increase from the prior year’s payout.

Looking to the Future

The collaboration between Ninety One and Sanlam is poised to reshape the asset management landscape in South Africa and beyond. By combining their expertise in asset management and insurance, both companies are set to leverage their strengths and deliver enhanced value to their clients. This partnership not only strengthens their market positions but also signals a new era of financial innovation and growth in the South African business world.

As Ninety One and Sanlam move forward with their partnership, they are laying the groundwork for a prosperous future in the South African financial sector. Their strategic alliance promises significant growth opportunities, a more integrated financial offering, and a stronger presence in both the local and global markets. Keep an eye on this evolving partnership as it continues to shape the future of asset management and insurance in South Africa.

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