Allianz and Sanlam merge to create Africa’s largest non-banking financial services company

Sanlam, Africa’s largest non-banking financial services company, and Allianz, one of the world’s leading insurers and asset managers, have agreed to combine their current and future operations across Africa to create the largest pan-African entity for non-banking financial services on the continent.

Through this collaboration, customers across Africa will benefit from the expertise and financial strength of two well-respected and well-known brands. The joint venture will house the business units of Sanlam and Allianz in African countries where either or both companies have a presence. Namibia will be included later and South Africa is excluded from the agreement.

The combined operations of Sanlam and Allianz will create a leading pan-African non-banking financial services entity, operating in 29 countries across the continent. The joint venture will be the largest pan-African insurance player and is expected to rank among the top three, in the majority of markets where the entity will operate. The entity is expected to have a combined total group equity value (GEV) in excess of 33 billion South African rand (about 2 billion euros).

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Sanlam and Allianz will leverage each other’s strengths to unlock synergies and provide customers with innovative insurance solutions and technical excellence. The joint venture will create value for all stakeholders through greater economies of scale, broader geographic presence, greater combined market share and more diversified product offering.

By combining Sanlam’s expertise in Africa with Allianz’s global capabilities and insurance solutions, particularly for multinational companies, the partnership aims to increase life and general insurance penetration, accelerate innovation products and fostering financial inclusion in high-growth African markets.

“In line with Sanlam’s stated ambition to be a leading pan-African financial services group, the proposed joint venture will allow us to take an important step towards realizing this ambition. It will also strengthen our leadership position in several key markets that are central to our strategy in Africa, driving quality and scale where it matters. We are delighted to have Allianz as a partner and are confident that their expertise and financial strength will add tremendous value to our business,” said Sanlam Group CEO Paul Hanratty.

Allianz SE Board Member Christopher Townsend said the joint venture will help Allianz gain a foothold in key markets..

“In line with our corporate strategy to expand our leadership position through scale and new partnership models, Allianz is pleased to accelerate its growth in this important region through a partnership with the undisputed market leader . Sanlam’s capabilities extend our local reach and market penetration, and the joint venture enables us to establish leadership positions in key growth markets for Allianz.

“Furthermore, Sanlam shares our company values, our focus on securing our customers’ future, and our long-term, generational approach to growth in new markets,” he said.

The chairmanship of the joint venture will alternate every two years between Sanlam and Allianz. The CEO of the entity will be appointed in due course. The agreement is subject to certain conditions precedent including, but not limited to, obtaining required approvals from competition authorities, financial/insurance regulatory authorities and all customary conditions that Sanlam and/or Allianz would be required to complete for each jurisdiction.