Insurers Sanlam Ltd and Germany’s Allianz have merged their African operations into one unit controlled by their partnership for at least 10 years.
The combined operations, worth $ 2.1 billion (Sh243 billion) will create a an-African non-banking financial services entity, operating in 29 African countries excluding South Africa.
“We are delighted to have Allianz as partners and believe their expertise and financial strength will add tremendous value to our businesses,” said Sanlam Group CEO Paul Hanratty.
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.
The entity is expected to have a combined total group equity value (GEV) in excess of 33 billion South African rand (Sh241 billion).
The partnership aims to increase life and general insurance penetration, accelerate product innovation and drive financial inclusion in high-growth African markets.
“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,” said Christopher Townsend a board member of Allianz SE
The chairmanship of the joint venture partnership will rotate every two years between Sanlam and Allianz. 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.
