Allianz has announced a joint venture with African financial services firm Sanlam.
According to the two firms, the joint venture will create the largest financial services company on the African continent. The joint venture will house the business units of both Sanlam and Allianz in 29 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 entity is expected to have a combined total group equity value (GEV) in excess of 33 billion South African rand (approximately 2 billion euros).
Paul Hanratty, CEO of Sanlam Group, 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.”
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 precedent, including but not limited to the receipt of required approvals from competition authorities, financial/insurance regulatory authorities and any customary conditions that Sanlam and/or Allianz would be required to fulfil for each jurisdiction.