Sanlam, Allianz Partner to Form African Insurance Giant

South Africa’s Sanlam Group and Germany’s Allianz, will combine their current and future operations in Africa to create the largest Pan-African non-banking financial services entity.

In a joint press release dated May 4, the companies stated that the venture will house the business units of both Sanlam and Allianz in the African countries where one or both companies will have a presence.

“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,” read the release.

Sanlam and Allianz, one of the world’s leading insurers in Africa, will leverage on each other’s strengths to unlock synergies and provide customers with “best-in class, innovative insurance solutions and technical excellence.”

Operating in 29 countries across Africa, the venture is expected to be ranked top three, in the majority of markets where the entity will operate.

The insurance giants have also signed an agreement to form a 10-year joint venture that will bring together their interests in their local subsidiaries Sanlam Kenya and Jubilee Allianz General Insurance Kenya.

South Africa will be excluded from the agreement, while Namibia will be included at a later stage.

“The joint venture will create value for all stakeholders through greater economies of scale, broader geographical presence, larger combined market share and a more diversified product offering.” read the statement.

The combination of the two companies will see customers across Africa benefit from the expertise and financial strength of the two.

“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 chairmanship of the joint venture partnership will rotate every two years between Sanlam and Allianz, and a CEO of the entity will be named in due course.