In Johannesburg, South Africa, Sanlam, the largest non-banking financial services provider in Africa, and Allianz, a global leader in insurance and financial services, have received approval from regulators to combine their operations across 27 African countries, including Uganda.
The two companies have disclosed that they’ve secured regulatory clearance for their partnership, which will establish a leading Pan-African non-banking financial services firm primarily focused on insurance.
Operating under the name Sanlam Allianz, the joint venture aspires to become one of the top three players in terms of market share and profitability in those markets. It boasts a combined equity of $1.84 billion (approximately 6.876 trillion shillings).
While the specific ownership structure is still being negotiated, earlier reports indicated a tentative ratio of 40:60 for the venture. Allianz entered the Ugandan and East African markets in 2020 by acquiring a 66 percent stake in Jubilee Holdings and has since expanded its presence to Burundi, Tanzania, Mauritius, and Kenya.
Conversely, Sanlam has been offering insurance and related risk services in Uganda since 2010.
Paul Henratty, Sanlam Group Chief Executive, anticipates that both retail and corporate clients will benefit from a wider range of insurance products tailored to their needs, along with top-tier financial solutions. Henratty expressed confidence that Sanlam Allianz will generate substantial value for clients, shareholders, and other stakeholders, emphasizing the combined expertise and resources of the two companies in addressing the evolving needs of African clients.
Allianz is set to contribute its shares in its African subsidiaries, including majority stakes in Jubilee General Insurance in Uganda, Burundi, and Kenya, acquired last year. Provisions in the transaction agreements allow for adjustments to be made later to determine the final shareholding split for the joint venture, according to Sanlam.
Christopher Townsend, a board member of Allianz SE, stated, “Sanlam Allianz has the potential to lead in key markets, encompassing general insurance and life segments. We aim to tap into the growth potential of multiple fast-growing African markets and reach a broader customer base, particularly in the corporate sector.”
Sanlam Allianz’s key priorities include promoting financial inclusion by offering greater access to products and services through digital innovation. They also plan to leverage telecommunications and bancassurance partnerships to create new opportunities across the African region. Additionally, the venture intends to enhance its offerings in property and casualty insurance, as well as life insurance, through innovation and economies of scale.
