Allianz inks deal to create pan-African insurance giant
Global re/insurance group Allianz has teamed up with the largest non-banking financial services company in Africa to create a pan-African insurance giant operating in 29 countries across the continent.
The entity is expected to have a combined total group equity value (GEV) in excess of 33 billion South African rand (approximately €2 billion).
Allianz and Sanlam have agreed to combine their current and future operations across Africa to create what they claim will be the “largest Pan-African insurance player”, expected to be ranked in the top three, in the majority of the markets where the entity will operate.
The joint venture will house the business units of both Sanlam and Allianz in the African countries where one or both companies have a presence. Namibia will be included at a later stage and South Africa is excluded from the agreement.
Sanlam and Allianz will leverage each other’s strengths to unlock synergies and provide customers with innovative insurance solutions and technical excellence, while creating value for all stakeholders through greater economies of scale, broader geographic presence, larger combined market share, and a more diversified product offering.
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.
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, including approvals from competition authorities and financial/insurance regulatory authorities.
“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 , Member of the Board of Management of Allianz SE.
“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.”
Sanlam Group CEO Paul Hanratty, said: “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.”
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