Sanlam and Allianz have received regulatory approval for their joint venture, SanlamAllianz, to provide insurance and financial services to retail and corporate clients in 27 African markets.
Products and services will be available in the markets where one or both companies currently operate. Namibia will be included at a later stage, but South Africa is excluded from the agreement.
The collaboration is expected to have a combined group equity value of approximately R35bn (£1.5bn, $1.7bn, €1.8bn).
SanlamAllianz priorities include providing greater access to products and services through digital innovation; using both firms’ telecommunications and bancassurance partnerships to create new opportunities across Africa; and growing the life and general insurance businesses.
Heinie Werth, the current chief executive of Sanlam Emerging Markets, has been appointed chief executive of SanlamAllianz. He has held various executive positions, including finance director, during his 25-year career at Sanlam.
‘Significant step forward’
Paul Hanratty, Sanlam Group chief executive, 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.
“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.”
Christopher Townsend, board member of Allianz SE, added: “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 this vibrant continent and is building on our 100-year legacy here.”
