Sanlam and Allianz have announced a new joint venture that will see the insurance firms create possibly the largest non-banking financial services firm in Africa.
The deal remains subject to regulatory approvals across multiple jurisdictions.
The joint venture will have operations in at least 29 African countries. The entity will have a combined total group equity value of over 2 Billion Euros.
Allianz is one of the world’s leading insurers and asset managers, and has a significant presence in Africa. Sanlam, on the other hand, is a market-leading insurer in Africa.
The newly birthed entity will undoubtedly shake up the insurance market across the continent.
“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,” the companies confirmed in a joint statement sent to newsrooms.
In Kenya, both Sanlam and Allianz have a presence. Allianz completed the acquisition of a majority stake in Kenya’s Jubilee Insurance in 2021 giving it a firm foothold in the East African market.
The joint venture aims to capitalize on the strengths of both brands to create value for customers and stakeholders.
“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 firms stated.
The chairmanship of the joint venture partnership will rotate every two years between Sanlam and Allianz. The CEO of the new entity will be named in due course.