Sanlam to hold majority stake in new African insurance JV with Allianz

 Sanlam to hold majority stake in new African insurance JV with Allianz

Sanlam, the largest non-banking financial services company in Africa, and Allianz, one of the world’s leading insurers and asset managers, have agreed to combine their businesses in the continent outside South Africa to create one of the largest pan-African non-banking financial firms.

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 initial shareholding split of Sanlam and Allianz will be 60:40 respectively, with the ability for Allianz to increase its shareholding to a maximum of 49% over time.

Sanlam’s operations in Namibia will be brought under the JV at a later stage, and at a time when Allianz will also have the option to increase its holding to 49%. Sanlam’s operations in India, the Middle East and Malaysia will not be part of the JV.

The chairmanship of the joint venture will rotate every two years between Sanlam and Allianz. The CEO of the entity will be named in due course.

The combined operations of Sanlam and Allianz will create an entity operating in 29 countries across the continent. It will be the largest pan-African insurance player and is likely to be ranked in the top three in most markets where it will operate. The entity is likely to have a combined total group equity value in excess of ZAR33 billion ($2 billion).

“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,” said Sanlam Group CEO Paul Hanratty.

“Sanlam’s capabilities extend our local reach and market penetration, and the joint venture allows us to establish leading positions in key growth markets for Allianz,” according to Christopher Townsend, member of Allianz board.

Vivek Sinha

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