INDIAN POLICIES HELP OFFSET HOME STAGNATION OF S.AFRICA'S SANLAM

More than a million insurance policies signed in India in the past three years have helped South African insurance giant Sanlam offset the company's stagnation back home.

Sanlam chief executive Johan van Zyl told the daily Business Report that more than 9,000 insurance policies were signed in July 2010 alone by Shriram Life Insurance Company, in which Sanlam has 26 per cent stake.

The company is a joint venture with Chennai-based Shriram. Sanlam is planning to raise its stake in the company to 49 per cent.

The exponential growth in India has augured well for the second-largest life insurer, listed on the Johannesburg Securities Exchange, as it saw India as an opportunity to offset the slow growth in South Africa.

"We want to position ourselves to have a scale position in the financial sector in the markets of India, South Africa and the rest of Africa over time," Van Zyl told the daily, adding his earlier strategy to exploit emerging middle class in India reaped dividends.

India has untapped potential of US$2 trillion in cash deposits, with more than 90 per cent of potential investors not using financial market instruments. Van Zyl said Sanlam would pursue selective add-on and diversification opportunities.