Africa-Press – Namibia. AFRICAN financial services company Sanlam has joined forces with the Allianz Group to combine their current and future operations across Africa, and create the largest pan-African non-banking financial services entity on the continent.
Allianz is one of the world’s leading insurers and asset managers with a century of history in Africa. According to the two companies in a statement yesterday, this combination means that customers across Africa will benefit from the expertise and financial strength of 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. Namibia will be included at a later stage, while South Africa is excluded from the agreement.
Sanlam Group chief executive officer Paul Hanratty says the proposed joint venture will enable them to take a significant step towards realising that ambition, in line with Sanlam’s objective to be a leading pan-African financial services group.
“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,” he notes.
The combined operations of Sanlam and Allianz will create a premier pan-African non-banking financial services entity, operating in 29 countries across the continent.
The joint venture is expected to 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 combined total group equity value is expected to be in excess of R33 billion (approximately 2 billion euros).
Moreover, the 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 two companies say the partnership aims to increase life and general insurance penetration, accelerate product innovation and drive financial inclusion in high-growth African markets.
“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,” says member of the board of management of Allianz SE Christopher Townsend.
Townsend added that Sanlam’s capabilities extend Allianz’ local reach and market penetration, and the joint venture allows them to establish leading positions in key growth markets.
“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,” he explained.
The chairmanship of the joint venture partnership will rotate every two years between Sanlam and Allianz. The chief executive will be named in due course.
The agreement is subject to certain conditions precedent, including the receipt of required approvals from competition authorities, financial/insurance regulatory authorities and any customary conditions that Sanlam and/or Allianz would be required to fulfil for each jurisdiction.
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