Sanlam, a non-banking financial services provider based in South Africa, and Allianz, a global leader in insurance and financial services, jointly announced that they had each received approval for the joint venture that will result in the top Pan-African nonbanking financial services organization with a presence in 27 African nations. 

The joint venture, SanlamAllianz’s goal is to rank among the top three companies in terms of market share and profitability in the markets in which it will compete. The combined group equity value (GEV) of the joint venture is anticipated to be around R35 billion.

Customers in the retail and corporate sectors will gain from a wider selection of insurance products that are suited to their requirements as well as best-in-class financial solutions. The marketplaces in which one or both of the enterprises already operate will be able to access goods and services.

Sanlam Group’s chief executive officer, Mr Paul Hanratty said “We are confident that SanlamAllianz will create significant value for clients, shareholders and other stakeholders. The combined expertise and resources of our respective companies will enable us to provide innovative solutions and services to meet the ever-evolving needs of our clients on the African continent.”

Mr. Christopher Townsend, the board member of Allianz SE, remarked: “SanlamAllianz has the capability to gain leadership positions in all key markets in both general insurance and life segments. With this powerful partnership, we want to unlock the potential of multiple fast-growing African markets and access a wider range of customers, particularly in the corporate segment. Allianz is deepening its commitment to the vibrant continent and is building on our 100-year legacy here.”

One of the main objectives of the joint venture is to drive financial inclusion, focusing on the number of lives touched, by providing greater access to products and services through digital innovation and leveraging their telecommunications and bancassurance partnerships to create new opportunities across the Africa region.

Also, it would provide the best of two leading multinational brands with enhanced offerings in property and casualty as well as life insurance offerings through innovation and the additional capabilities enabled by greater economies of scale and grow the life and general insurance businesses through product, service, and distribution innovation.

Mr Hanratty further said “The joint venture marks a significant step forward in further implementing Sanlam group’s strategy that we have pursued over the past few years. Opportunities to improve insurance penetration in Africa abound for those with the right combination of financial strength, scale, new technology, and a tangible commitment to the customer. We believe that SanlamAllianz has all the ingredients to succeed on this new journey.”

The CEO of Sanlam Emerging Markets, Mr. Heinie Werth, has been chosen to lead SanlamAllianz. Mr. Werth has worked with Sanlam for 25 years and has held a number of managerial roles, including finance director.