South African financial services group Sanlam has concluded the acquisition of a 49% stake in Malaysian niche short-term insurer, Pacific & Orient Insurance Co. Berhad (POI), for nearly MYR270m ($89.m).
Sanlam Emerging Markets (SEM), which implemented the deal, is responsible for Sanlam Group’s international expansion into selected emerging markets
Part of Sanlam’s strategy to pursue profitable growth opportunities in selected emerging markets, the transaction represents a first step into the South East Asia region.
Says Sanlam Emerging Markets CEO Heinie Werth said a good cultural fit between POI and Sanlam will facilitate the company’s focus on strengthening relationship to drive business growth.
"We are also looking at other opportunities in the region, but the immediate focus is on bedding down this investment," Werth added.
POI was set up in 1972, and is focused on motorcycle insurance with a significant market share in this segment in Malaysia.