Sanlam, Africa’s largest non-banking financial services provider, and Allianz, a global leader in insurance and financial services, have received regulatory approvals for their joint venture. This strategic partnership, which was first announced in May 2022, aims to establish SanlamAllianz, a prominent Pan-African non-banking financial services company with a presence in 27 African countries.
While excluding South Africa, this ambitious venture aspires to be among the top three players in both market share and profitability across its operating regions. With a combined group equity value (GEV) estimated at approximately R35 billion (US$1.8 billion), SanlamAllianz is set to offer an extensive range of insurance products and financial solutions tailored to the needs of retail and corporate clients.
Sanlam has a 60% stake in the newly formed joint venture, while Allianz holds 40%. Allianz also has the option to gradually increase its ownership to a maximum of 49% in the future.
The Birth of SanlamAllianz
SanlamAllianz, the result of this partnership, is poised to make a significant impact on the African financial services landscape. With the collective expertise and resources of Sanlam and Allianz, the company aims to deliver innovative solutions and services that cater to the evolving needs of African clients. The joint venture’s ultimate goal is to create value for clients, shareholders, and stakeholders alike, solidifying its position as a leading player on the continent.
The Vision and Priorities of SanlamAllianz
SanlamAllianz has outlined its vision and strategic priorities as follows:
- Financial Inclusion: The company is committed to expanding financial inclusion by providing greater access to its products and services through digital innovation. Leveraging telecommunications and bancassurance partnerships, SanlamAllianz seeks to touch more lives and create new opportunities across Africa.
- Enhanced Offerings: By combining the strengths of two multinational brands, SanlamAllianz aims to offer enhanced property and casualty as well as life insurance products through innovation and economies of scale.
- Innovation and Growth: The joint venture plans to foster growth in both the life and general insurance sectors through innovation in products, services, and distribution channels.
Leadership and Commitment
Mr. Heinie Werth, who has had a 25-year career at Sanlam, including roles as finance director, has been appointed as the CEO of SanlamAllianz. This leadership change underscores the commitment of both companies to the success of the joint venture.
Conclusion
The approval of the Sanlam and Allianz joint venture marks a significant milestone in the African financial services industry. SanlamAllianz’s strategic approach to financial inclusion, innovation, and growth positions it as a formidable player in Africa’s non-banking financial services sector. As this partnership unfolds, it promises to deliver value to clients, shareholders, and the continent’s rapidly evolving financial landscape.
