African non-banking financial services provider, Sanlam, and global insurer Allianz have announced the receipt of regulatory approvals for a joint venture called SanlamAllianz, a Pan-African non-banking financial services company with a presence in 27 countries across the continent.
The joint venture’s ambition is to be among the top three players, in both market share and profitability, in the markets where the company will operate.
Heinie Werth, the current Chief Executive Officer of Sanlam Emerging Markets, has been appointed as CEO of SanlamAllianz. Werth spent 25 years at Sanlam and has held various executive positions within the group, including that of finance director.
The expected combined group equity value (GEV) of the joint venture is approximately R35 billion.
Retail and corporate clients will benefit from a broader offering of insurance products tailored to their needs as well as best-in-class financial solutions. Products and services will be available in the markets where one or both companies currently operate.
Paul Hanratty, Sanlam Group’s CEO, commented, “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 pair have revealed that Namibia will be included at a later data, while South Africa is excluded from the agreement.
Christopher Townsend, board member of Allianz SE, commented, “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.”
SanlamAllianz’s priorities are to drive financial inclusion by providing greater access to products and services through digital innovation. The company will aim to leverage its telecommunications and bancassurance partnerships to create new opportunities across the African region.
It will provide the best of two 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.
Hanratty concluded, “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.”
