Sanlam, the largest non-banking financial services company in Africa, and Allianz, one of the world’s leading insurers and asset managers with a century of history in Africa, have agreed to combine their current and future operations across Africa to create the largest Pan-African non-banking financial services entity on the continent.
According to Sanlam Group CEO, Paul Hanratty, the partnership means that customers across Africa will benefit from the expertise and financial strength of two respected and well-known brands.
Meanwhile, 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 and South Africa is excluded from the agreement.
Mr. Paul Hanratty iterated that 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 will 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 2 billion euros.”
Mr. Paul Hanratty
Creating Strong synergies
Mr. Paul Hanratty indicated that 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.”
Combining Sanlam’s expertise in Africa with Allianz’s global capabilities and insurance solutions, particularly for multinational businesses, the Sanlam Group CEO noted that 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. We are delighted to have Allianz as partners and believe their expertise and financial strength will add tremendous value to our businesses.”
aul Hanratty
Allianz Board Member Pleased with Partnership
Member of the Board of Management of Allianz SE, Christopher Townsend, stated that in accordance with Allianz’s enterprise strategy to expand its 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.”
Christopher Townsend
Meanwhile, the chairmanship of the joint venture partnership will rotate every two years between Sanlam and Allianz. However, Mr. Townsend disclosed that the CEO of the joint venture will be named in due course.
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