Sanlam Group (South African based) and Germany’s Allianz have joined forces in a Ksh.243.7 billion deal to merge 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.”
The joint venture with an equity value of about Ksh.243.7 billion to operate in 29 countries means that customers across Africa will benefit from the expertise and financial strength of two respected and well-known brands.
Namibia, however, will be included at a later stage and South Africa excluded from the agreement.
The combination is expected to be the largest Pan-African insurance player seeking to be ranked in the top three, in the majority of the markets where the entity will operate.
The two entities will leverage each other’s strengths to unlock synergies and provide customers with best-in-class, innovative insurance solutions and technical excellence.
Following the joint venture, Sanlam and Allianz have initiated plans to announce their Chief Executive soon even as the chairmanship of the joint venture partnership will rotate after every two years .
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.
