Sanlam / Allianz: An African insurance giant is born

Apan-African insurance giant is born! The Sanlam and Allianz groups have just merged their operations to create the “largest pan-African non-banking financial services entity”. As our newspaper announced in our edition of December 22, 2021, the two groups are combining their efforts and setting up a joint venture (JV) which will bring together the entities of Sanlam and of Allianz in African countries where one or both companies are already operational. This alliance means customers across Africa “will benefit from the expertise and financial strength of two well-respected and well-known brands,” indicated the two partners.
In total, the new giant will be operational in 29 countries across the continent. Namibia will be included later, and South Africa is not yet part of this agreement.
Capitalizing  on this continental alliance, the two groups intend to bring into play “considerable” synergies on the operational level or even achieve substantial economies of scale. Indeed, Sanlam and Allianz ambition to make the most of their respective expertise in order to create synergies and complementarities through innovative insurance solutions with high added value from a technical point of view. “The JV also aims to generate value for all stakeholders and achieve economies of scale through a broader geographical presence, stronger market shares, or even more diversified solutions and products”, announce the two partners.
“The joint venture will represent the largest player in the insurance sector on a continental scale and will position itself among the top three players  in  most of the markets in which it operates”, explains Allianz. The two groups expect a combined global equity value of around 2 billion Euros.
In concrete terms, the partnership aims to increase the penetration of life and non-life insurance across the continent which will require the combined efforts of Sanlam’s expertise in Africa and the solutions of the German group Allianz that meet international standards. The challenge also consists in accelerating innovation with high value-added products or even promoting financial inclusion in high-growth African markets, like the Moroccan market. “This joint venture will allow us to move forward in achieving our strategic ambitions. This will enable us to raise our standards and become a leading pan-African group in the world of financial services”, specifies the new player. The JV will also consolidate the leadership position in several key markets while strengthening quality and economies of scale. “We are convinced that the expertise and financial strength of the Allianz Group will bring strong added value to our activities”, said Paul Hanratty, CEO of Sanlam. As for Christopher Townsend, member of the Board of Directors of Allianz, he said: “We look forward to accelerating our growth in this high-potential region through our partnership with the undisputed leader of the continent. Sanlam’s capabilities will enable us to expand our local presence and market penetration… The JV will help us establish a leadership position in Allianz’s key growth markets”. As far as the governance part is concerned, Sanlam and Allianz will ensure a biennial rotation in the presidency of the joint venture. The CEO of the new entity will be appointed shortly. 

Amin RBOUB