In June 2014, Sanlam acquired a 63% stake in Soras for $24.3m and purchased the remaining shares in 2017 that helped Sanlam to capture a 35% share of the insurance market in Rwanda.
After that Sanlam completed the purchase of Saham in March 2018. It owned a 30% stake in Saham since February 2016 and increased its stake to 46.6% in May 2017.
Subsequently, Sanlam decided to merge Soras and Saham to further bolster its presence in Rwanda.
The merger of the two companies was signed on 30 January 2019 by the board of directors Vianney Shumbusho Rurangirwa of Soras and Jean Baptiste Ganza Gasanana of Saham, reported The New Times.
A statement was cited by the publication as saying: “The proposed merger will have a positive impact on all stakeholders, enabling the merged company to offer a wide range of world-class innovative products and services.”
Under the terms of the merger agreement, all assets and liabilities of Saham Assurance Rwanda, including existing insurance policies and related obligations, will be transferred to Soras.
The combination of both insurance firms has secured approval from the National Bank of Rwanda (BNR). The merger is likely to conclude by the end of March this year.
In 1984, Soras Group launched its operations in Rwanda. The company expanded its product offering to include provide health insurance, pension, death insurances loans, students saving scheme in 2010.