Sanlam Group and Allianz Insurance have entered into partnership to establish the largest Pan-African non-banking financial services entity across Africa.
Allainz Insurance said this in a statement issued on Wednesday in Lagos.
The News Agency of Nigeria (NAN) reports that Sanlam is a non-banking financial services company while Allianz is an insurer and asset managers, both in Africa.
The statement said that the joint venture would house the business units of both Sanlam and Allianz in the African countries where either of the companies had a presence.
“Except for Namibia which will be included at a later stage and South Africa which is excluded from the agreement,” it said.
According to the statement, the synergy between the companies means that customers across Africa will benefit from the expertise and financial strength of the two brands.
“The chairmanship of the joint venture partnership will rotate every two years between Sanlam and Allianz, as the 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 fulfill for each jurisdiction, ” the statement said.
Mr Paul Hanratty, Chief Executive Officer(CEO), Sanlam Group, said that the combined operations of Sanlam and Allianz would create a premier Pan-African non-banking financial services entity, operating in 29 countries across the continent.
Hanratty explained that the joint venture would be the largest Pan-African insurance player.
According to him, it is expected to be ranked top three in the majority of the markets where the entity will operate.
He said that the entity was expected to have a combined total Group Equity Value (GEV) in excess of 33 billion South African rand (approximately 2 billion euros).
The Sanlam CEO said, the two firms will leverage each other’s strengths to unlock synergies and provide customers with best-in-class, innovative insurance solutions and technical excellence.
He noted that the partnership would create value for all stakeholders through greater economies of scale, broader geographic presence, larger combined market share, and a more diversified product offering.
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“Combining Sanlam’s expertise in Africa with Allianz’s global capabilities and insurance solutions, particularly for multinational businesses, 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,” he said.
A Board Member of Allianz SE, Mr Christopher Townsend, said that Sanlam shares values and purpose with Allianz.
Townsend said that includes securing the future for its clients, its long-term and generational approach to growing in new markets.
He also said that Sanlam’s capabilities extend Allianz local reach and market penetration, as the joint venture would allow Allainz to establish leading positions in key growth 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,” he said.
(NAN)
