Allianz, Sanlam Launch Joint Operations in Africa

Rabat – Sanlam, Africa’s largest non-banking financial services company, and Allianz, a German leading insurer and asset manager, announced on May 4 they will launch joint operations in Africa.

With the new alliance, Sanlam and Allianz will pave the way for the creation of the largest African, non-banking financial services entity, the two groups said in a joint press release.

The joint venture will comprise the business units of both Sanlam and Allianz across African countries where the two companies are already present. While South Africa is excluded from the agreement, the venture is set to later expand to include Namibia.

The two companies hope to create a world-class non-banking financial services entity that is present across 29 African countries.

Allianz and Sanlam noted in their joint press release that the venture will likely rank among the top three largest non-banking, financial services providers in the majority of their African markets.

The venture is estimated to have a combined total group equity value of close to £2 billion, the statement highlighted.

Sanlam and Allianz will draw on each other’s expertise to offer their African customers innovative insurance solutions.

Through their joint venture, the two companies hope to create value for all their stakeholders by relying on a broader geographical presence, larger combined market share, and a more diversified product offering, their statement explained.

In particular, the joint venture aims to increase insurance coverage, and accelerate the rate of innovation in the insurance sector, as well as tap into the underbanked and unbanked segments within high-growth African markets.

Sanlam Group CEO Paul Hanratty said that the alliance is “in line with Sanlam’s stated ambition to be a leading Pan-African financial services group.”

The venture “will also strengthen our leadership position in multiple key markets that are core to our Africa strategy, building quality and scale where it matters,” he noted “We are delighted to have Allianz as partners and believe their expertise and financial strength will add tremendous value to our businesses.”

Christopher Townsend, Member of the Board of Management of Allianz said that “Allianz is pleased to accelerate its growth in this important region through a partnership with the undisputed market leader.”

He further explained, “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.”

Townsend added that “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.”

The chairmanship of the joint venture will have a mandate fixed at two years between Sanlam and Allianz, with the two companies promising to announce the CEO of the venture at a later date.