Sanlam, Africa’s largest non-banking financial services company, and Allianz, one of the world’s largest insurers and asset managers with a century of experience in Africa, have agreed to merge their current and future operations across the continent to form the continent’s largest non-banking financial services entity. Customers across Africa will benefit from the experience and financial strength of two well-known and recognized businesses as a result of this partnership.
In African nations where either or both firms have a presence, the joint venture will contain the business units of Sanlam and Allianz. Namibia will be added later, and South Africa would be left out of the pact.
Sanlam and Allianz will combine their activities to form a significant pan-African non-banking financial services company with operations in 29 African nations. The joint venture will be the largest pan-African insurer and is likely to be in the top three in the bulk of the markets where it operates.
The entity’s combined total group equity value (GEV) is estimated to exceed 33 billion South African rands (about 2 billion euros).
Sanlam and Allianz will combine their strengths to create synergies and provide consumers with the most cutting-edge insurance products and technical expertise. Greater economies of scale, a bigger global presence, a higher combined market share, and a more diverse product offering will all benefit the joint venture’s stakeholders.
The partnership aims to increase life and general insurance penetration, accelerate innovation products, and foster financial inclusion in high-growth African markets by combining Sanlam’s expertise in Africa with Allianz’s global capabilities and insurance solutions, particularly for multinational companies.
“In line with Sanlam’s stated ambition to be a leading pan-African financial services group, the proposed joint venture will allow us to take a significant step towards achieving this ambition. It will also strengthen our leadership position in several key markets. who are at the heart of our strategy for Africa, expanding quality and scale where it matters. We are delighted to have Allianz as a partner and believe that their expertise and financial strength will add tremendous value to our business,” said Paul Hanratty, CEO of Sanlam Group.
“In line with our corporate strategy to expand our leadership position through scale and new partnership models, Allianz is pleased to accelerate its growth in this important region through a partnership with the undisputed market leader Sanlam’s capabilities extend our local reach and market penetration, and the joint venture enables us to establish leading positions in key growth markets for Allianz,” said Allianz Board Member Christopher Townsend. SE.
“Furthermore, Sanlam shares our company values, our focus on securing our customers’ future, and our long-term, generational approach to growing in new markets.”
Sanlam and Allianz will rotate the chairmanship of the joint venture every two years. In due course, the entity’s CEO will be named.
The agreement is subject to a number of pre-conditions, including the receipt of relevant clearances from competition authorities, financial/insurance regulators, and any other requirements that Sanlam and/or Allianz would be needed to meet in each jurisdiction.
