The Abraaj Group has fully exited its shareholding in African insurer, Saham Finances, to Sanlam Group and the Saham Group, a diversified Moroccan-based conglomerate operating in the insurance, offshoring and real estate sectors in the Middle East and Africa, and the parent company of Saham Finances.

The International Finance Corporation (IFC) and the IFC African Latin American and Caribbean Fund (ALAC) have also exited their shareholding alongside Abraaj.

The transaction is subject to regulatory approvals and is expected to close in early 2016.

Ahmed Badreldin, Partner and Regional Head for Middle East and North Africa at The Abraaj Group, said: “We have enjoyed a strong partnership with Saham Finances over the course of our investment and, together, helped grow the business into a leading insurance player providing diversified products and services to a growing client base."

"We believe the business is now well positioned to capture further market share across the continent and support the exciting new alliance between the Sanlam and Saham Group,” he said.

Abraaj invested in Saham in 2012 through two of its Funds.

The Company is a leading insurer in Africa with a presence in 26 countries, a network of over 650 branches with more than 3,000 staff, and a consolidated turnover of over $1 bn.

The Company operates across three main sectors: insurance and reinsurance, assistance, and third party administration (TPA).

It is the market leader for short-term insurance and life insurance across Africa and the pan-African leader in assistance through its partnership with Mondial Assistance.

Saham has also leveraged its third-party administration services to optimize the management of health care costs through an extensive health care insurance network and a focus on providing beneficiaries with outstanding service quality.

Abraaj’s investment in Saham was predicated on changing demographics that were fuelling a greater demand for quality insurance care across both the corporate and consumer sector in its target markets.

Moreover, at the time of investment, the insurance markets in the Middle East and Africa remained heavily underpenetrated with insurance penetration rates at approximately one third of the global average thereby providing a strong rationale to invest into the sector and take a lead position.

Saham was well positioned to capitalize on this market opportunity given the strength of its management team, its wide footprint across the Middle East and Africa, and its proven ability to successfully expand through organic and acquisitive growth.

Over the course of its investment, Abraaj enabled the Company to expand its regional footprint by facilitating strategic acquisitions in six countries in the Middle East and Central and East Africa, thereby supporting Saham to achieve its target of being present in over 20 countries in the region.

Abraaj and the Company’s management also worked together to establish greater institutionalization through improved corporate governance, enhanced financial reporting, and the establishment of a best in class MIS in order to manage the integration and development of systems across the Company’s subsidiaries.

Raymond Farhat, Managing Director of Saham Finances, said: “In partnership with Abraaj, IFC and the IFC ALAC Fund, Saham has been able to execute a number of initiatives that have positioned us for renewed growth and expansion. We take this opportunity to thank our partners for their close collaboration and support."

"Saham is now well poised to grow even faster and our new partnership with Sanlam is an important step to expand our mutual geographic presence to ensure a Pan-African footprint,” he said.