South Africa's largest insurer Sanlam Ltd has sold its stake in Ghanaian holding company Enterprise Group's insurance business for $130 million but will retain a presence in the country, Sanlam said on Friday.

Sanlam Emerging Markets (SEM), a subsidiary of the Sanlam Group, acquired the 40 percent stake in Enterprise Insurance in 2014.

Sanlam Emerging Markets sold its stake in Enterprise Life Assurance Company Limited, Enterprise Trustees Limited and Enterprise Insurance Company Limited to Black Star Holdings Limited, a separate managed account held by LeapFrog Strategic African Investments and Prudential Insurance of America.

Since 2015, Sanlam has also owned a 30 percent stake in Saham Finances insurance division, which is present across Africa including Ghana.

"With SEM as a strategic partner in both the Enterprise Group and Saham Finances, it would have been difficult to meet the regional expansion aspirations of the Enterprise Group," said Sanlam.

Sanlam will continue to have a presence in the Ghanaian insurance market through Saham.

Ghana remains strategically important for the company "and options to re-establish a meaningful presence in the country are under consideration," Sanlam said.

Shares in Sanlam, which has operations in 11 African countries, India and Malaysia, closed up 0.97 percent to 65.37 rand.