Sanlam Enters Nigerian Insurance Market

July 1 - The South African insurer, Sanlam, is hoping to make serious headway in the West African insurance market by teaming up with the First Bank of Nigeria

The South African based group said that it would be rolling out insurance products as early as this month.

"About 60% of all our potential clients in Nigeria bank with First Bank," said that Chief Executive Officer of Sanlam, Johan van Zyl. "We can get the money in from those clients fairly easily and quickly."

Other South African insurance groups such as Old Mutual are also hoping to enter the Nigerian market, but have a longer way to go.

While other insurance groups reported losses due to the global crisis in recent years, Sanlam has come out of the recession stronger than ever and can afford to chase growth.

Explaining the plan to enter the Nigerian market, van Zyl said: "We have 35 percent of the arrangement and it's a simple model where we'll roll out 30 to 50 branches this year.

First Bank of Nigeria has 400 branches around the country.

"If it works, we can do a hell of a lot in the next 18 months to two years," said van Zyl optimistically.

Sanlam also announced that it would be expanding into India as well, and was also seeking a European partner.

The group's profits doubled last year.