Allianz, one of the world's leading insurers with a century of history in Africa, has joined forces with Sanlam, Africa's largest non-banking financial services company.
The partnership will enable Allianz and Sanlam to combine their current and future operations in 29 countries across Africa – creating the largest Pan-African non-banking financial services. It aims to increase life and general insurance penetration, accelerate product innovation, and drive financial inclusion in high-growth African markets by combining Sanlam's expertise in the continent with Allianz's global capabilities and insurance solutions.
Christopher Townsend, member of the board of management of Allianz SE, commented: “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. 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.”
Allianz and Sanlam expect the combined entity to rank in the top three in most markets where it will operate and have a combined total group equity value (GEV) in excess of 33 billion South African rand (around €2 billion). The combined entity will include Namibia at a later stage, but exclude South Africa.
Sanlam group CEO Paul Hanratty said the deal will strengthen the company's leadership position in multiple key markets that are core to its strategy to build quality and scale in Africa.
“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,” Hanratty said. “We are delighted to have Allianz as partners and believe their expertise and financial strength will add tremendous value to our businesses.”
The joint venture partnership's chairmanship will rotate every two years between Allianz and Sanlam, with the CEO named in due course. In addition, the agreement is still subject to certain conditions precedent, including but not limited to the receipt of required approvals from competition authorities, financial/insurance regulatory authorities, and any customary conditions that Sanlam and/or Allianz will be required to fulfil for each jurisdiction.