Sanlam, the largest non-banking financial services company in Africa, and Allianz, one of the world’s leading insurers and asset managers will combine their current and future operations across Africa to create the largest Pan-African non-banking financial services entity on the continent.
With this collaboration, customers across the continent will benefit from the expertise and financial strength of the two respected and well-known brands. The joint venture will house the business units of both Sanlam and Allianz in the African countries where one or both companies have a presence with plans to include Namibia at a later stage, however, South Africa is excluded from the agreement.
The combined operation will create a premier Pan-African non-banking financial services entity, operating in 29 countries across Africa. The joint venture will also be the largest Pan-African insurance player and is expected to be ranked in the top three, in the majority of the markets where the entity will operate. The entity is expected to have a combined total group equity value (GEV) in excess of 33 billion South African rands (approximately 2 billion euros).
Sanlam and Allianz will leverage each other’s strengths to unlock synergies and provide customers with best-in-class, innovative insurance solutions and technical excellence. The joint venture will create value for all stakeholders through greater economies of scale, broader geographic presence, larger combined market share, and a more diversified product offering.
The partnership aims to increase life and general insurance penetration, accelerate product innovation and drive financial inclusion in high-growth African markets.
What they said;
“In line with Sanlam’s stated ambition to be a leading Pan-African financial services group, the proposed joint venture will enable us to take a significant step towards realizing that ambition. It will also strengthen our leadership position in multiple key markets that are core to our Africa strategy, building quality and scale where it matters. We are delighted to have Allianz as partners and believe their expertise and financial strength will add tremendous value to our businesses,” — Sanlam Group CEO, Paul Hanratty.
“In accordance with our enterprise 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 allows us to establish leading positions in key growth markets for Allianz,” — Member of the Board of Management of Allianz SE, Christopher Townsend.
“Further, Sanlam shares our company values, our purpose of securing the future for our clients, and our long-term, generational approach to growing in new markets.”