Sanlam and Allianz combine operations in Africa to create insurance giant.
By Lehlohonolo Lehana.
Insurers Sanlam and Allianz have agreed to combine their current and future operations across Africa in a joint venture that will house the business units of both companies in the African countries where one or both companies have a presence.
Namibia will be included at a later stage and South Africa is excluded from the agreement.
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 groups said in a joint statement on Wednesday (4 May). The entity, they said, is expected to have a combined total group equity value in excess of R33 billion.
The partnership aims to increase life and general insurance penetration, accelerate product innovation and drive financial inclusion in high-growth African markets.
"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 realising 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," said Sanlam Group CEO Paul Hanratty.
The chairmanship of the joint venture partnership will rotate every two years between Sanlam and Allianz, according to both companies, while a CEO of the entity will be named in due course.
The agreement is 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 would be required to fulfil for each jurisdiction.