Sanlam SWOT and PESTLE Analysis
COMPANY PROFILE -Sanlam
Business Sector :Insurance
Operating Geography :South Africa, Africa, Global
About Sanlam :
Sanlam is a South African financial services conglomerate with headquarters in Bellville, Western Cape. The company is listed on the Johannesburg Stock Exchange, the Namibian Stock Exchange, and the A2X. In 1918, Sanlam Group began as a life insurance firm and now has grown into a multi-faceted financial services company. Sanlam Personal Finance, Sanlam Emerging Markets, Sanlam Banking, and Sanlam Insurance are the company's five industry clusters. Insurance (life and general), financial planning, retirement annuities, trusts, wills, short-term insurance, asset management, risk management, and capital market operations, as well as investment and wealth management, are all areas of specialisation for the company. Strategic direction, group financial and risk management, group marketing and communications, group human resources and information technology, group sustainability management, corporate social investment, and general group services are all centralised activities of the Sanlam Group's corporate office. The company is involved in South Africa, Namibia, Botswana, Swaziland, Zimbabwe, Mauritius, Malawi, Zambia, Tanzania, Rwanda, Uganda, Kenya, Ghana, Nigeria, Mozambique, India, Malaysia, and the United Kingdom, as well as having business interests in the United States, Australia, Burundi, Lesotho, and the Philippines. As of early 2022, Sanlam employed over 154,675 people.
Sanlam's Unique Selling Point or USP lies in it being the industry leader in client-centric wealth development and security, with a good operating record, diverse revenue sources, a strong and resilient capital base, and a diversified and proven market presence in South Africa. The company's vision statement reads, "To be the leader in wealth creation. The ultimate goal of Sanlam is to be a group of businesses focused on building, preserving and growing wealth for all our clients. Building wealth is about providing our clients with access to savings and credit products".
Sanlam Revenue :
R9469 million - FY ending 31st December 2021 (y-o-y growth 13%)
R8382 million - FY ending 31st December 2020
Competitive Analysis of Sanlam
Strengths | Weaknesses |
1. Biggest insurance company in Africa with strong competitive position 2. Huge, diversified portfolio of insurance product offering 3. Consistent financial performance and shareholder returns 4. Established technology platforms through data intelligence, digitalization, innovation and culture | 1. Delayed synergies between Sanlam and Saham impacting margins |
Opportunities | Threats |
1. African insurance market is expected to grow by 2025 2. Emerging themes and focus on customer experience in insurance sector 3. Africa demographic dividend and insurance penetration rates showing major potential 4. Leveraging digital and data to increase the value offered to clients 5. Strategic partnerships to accelerate growth in South Africa | 1. Frequent climate catastrophes in Africa can cause increased claim costs 2. SARS financial platform increases threat of cyberattacks |
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Detailed SWOT Analysis of Sanlam
Strength
1. Biggest insurance company in Africa with strong competitive position: Sanlam insurance is Africa's biggest insurer with presence in over 33 African countries. It had highest revenue turnover in African insurance industry with R9469 million which was 13% higher than previous year. The company is currently making expansion into Francophone countries and North African market. Sanlam’s major competitor Old Mutual has started business segmentation in order to emerge in the market, however, Sanlam still has higher competitive position due to early head start in expansion. Also, as Morocco is second largest insurance market in African region, the partnership of Sanlam with Saham gives it competitive advantage in Morocco to operate in all language regions. Sanlam in 2019 won African company of the year in CEO forum in Abidjan for the success on the continent.
2. Huge, diversified portfolio of insurance product offering: Sanlam with its footprints in 34 African countries and with strong presence in 33 African countries has diversified its insurance business into various industries and public offerings, with areas such as life & general insurance, financial planning, retirement and employee benefits, investments and wealth management. In the personal insurance segment, they offer life Insurance, disability cover, funeral cover, short-term insurance; the funeral cover insurance is highly popular in African regions. The financial planning products focus on client-centric solution to individuals and institutional. It also offers investment solutions for growth, education planning etc., retirement solutions, loan services, and wealth managements solutions. To facilitate large portfolio of services, it has partnered with banks, telecom companies, global brokers, affinity groups, etc.
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Weakness
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Opportunity
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Threat
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Major Competitors :
- Liberty South Africa
- Prudential
- Old Mutual
- Campion
- Absa
- Storebrand
- Scottish widows
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Sanlam SWOT & PESTLE Analysis Report
1. INSURANCE: Pan-African players - https://www.theafricareport.com/580/insurance-pan-african-players/
2. About Sanlam - https://www.sanlam.co.za/about/Pages/default.aspx#companyStructureAnchor
3. Awards - https://www.sanlam.co.za/sponsorships/awards/Pages/default.aspx
4. Annual Results 2021 - https://www.sanlam.com/downloads/results-announcements/2021/Sanlam-Annual-Results-2021.pdf
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