Sanlam stocks up 8.07% after striking Ksh.243.7 billion merger deal with Allianz

NSE listed banks' net profit grew to Ksh.141.5 billion in 2021; here’s how

Thursday evening closing figures on the Nairobi Securities Exchange (NSE) saw Sanlam Kenya stocks edge up 8.07 percent to trade at Ksh.12.05 per share.

This is mirrored by Sanlam Group’s move early this week which saw it enter into a merger deal with Allianz.

Allianz (Germany-based) joined forces with Sanlam in a Ksh.243.7 billion deal for their current and future operations across Africa to create one giant entity.

This will create the largest Pan-African non-banking financial services entity on the continent.

Sanlam Group CEO Paul Hanratty said that the entity will aim to combine Sanlam’s understanding of the African market with Allianz’s global reach and insurance solutions 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,” said Hanratty

The joint venture will operate in 29 countries and its customers within these markets will benefit from the expertise and financial strength of the two.

They will leverage each other’s strengths to unlock synergies and provide customers with best-in-class, innovative insurance solutions and technical excellence.

Sanlam is currently the biggest pension fund manager in Kenya after it took over Ksh.46 billion National Social Security Fund (NSSF) portfolio from British American Assets Managers (Britam).

It overtook GenAfrica with Ksh.288.8 billion in assets, up from Ksh.226.9 billion in 2020.

“Sanlam Investment East Africa Ltd and CIC Assets Management Ltd join the list of fund managers managing NSSF funds after the exit of the British American Asset Managers Ltd,” Retirement Benefits Authority (RBA) said in an industry report.

Britam was eliminated from NSSF’s profitable business, and almost Ksh.93 billion was redistributed to Co-Op Trust Investments, CIC, and Sanlam. Britam lost a Ksh.82.2 billion NSSF portfolio last year, according to a study by RBA.

In August last year, Sanlam Kenya recorded a huge loss for the period ended June to Ksh.291.9 million from a narrower loss of Ksh.99.1 million in June the previous year.

An almost triple loss was attributed to swollen claims and payouts to policyholders for the period.

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