Sanlam, Africa’s largest non-banking financial services provider, and Allianz, one of the world’s leading insurers and financial services providers, have received regulatory approval for the joint venture that will merge their African operations excluding those in South Africa.
The joint venture, which will operate under the name SanlamAllianz, will create a vehicle to provide insurance and financial services in 27 African markets.
Sanlam holds 60% of the joint venture, and Allianz the balance. But the split can be adjusted over time.
Sanlam first announced the financial services partnership in May 2022, and the transaction became effective on Monday.
SanlamAllianz’s ambition is to be among the top three players, in both market share and profitability, in the markets where the company will operate, Sanlam and Allianz said in a joint statement.
The joint venture is expected to have a combined group equity value of about R35 billion.
“Retail and corporate clients will benefit from a broader offering of insurance products tailored to their needs, as well as best-in-class financial solutions. Products and services will be available in the markets where one or both companies currently operate. Namibia will be included at a later stage, while South Africa is excluded from the agreement,” the statement said.
Sanlam has life and general insurance and investment management operations in more than 30 countries, including Morocco, Ivory Coast, Nigeria, and Botswana.
Germany-based Allianz’s insurance portfolio spans 11 countries, excluding South Africa, but including operations in Egypt, Kenya, Cameroon, and Uganda.
Heinie Werth, the chief executive of Sanlam Emerging Markets, has been appointed as the chief executive of SanlamAllianz.
The priorities of SanlamAllianz are to:
- Drive financial inclusion, focusing on the number of lives touched, by providing greater access to products and services through digital innovation, and leveraging their telecommunications and bancassurance partnerships to create new opportunities across Africa.
- Provide the best of two leading multinational brands with enhanced offerings in property and casualty, as well as life insurance offerings, through innovation and the additional capabilities enabled by greater economies of scale.
- Grow the life and general insurance businesses through product, service, and distribution innovation.
Sanlam’s chief executive, Paul Hanratty, said the group is confident that SanlamAllianz will create significant value for clients, shareholders, and other stakeholders.
“The joint venture marks a significant step forward in further implementing Sanlam group’s strategy that we have pursued over the past few years. Opportunities to improve insurance penetration in Africa abound for those with the right combination of financial strength, scale, new technology, and a tangible commitment to the customer. We believe that SanlamAllianz has all the ingredients to succeed on this new journey,” Hanratty said.
Christopher Townsend, board member of Allianz, commented: “SanlamAllianz has the capability to gain leadership positions in all key markets in both general insurance and life segments. With this powerful partnership, we want to unlock the potential of multiple fast-growing African markets and access a wider range of customers, particularly in the corporate segment.”
