Sanlam and Allianz creates a R33 billion Pan-African financial services company

Sanlam and global financial services group Allianz SE have reached an agreement to create a R33 billion “leading Pan-African financial services” joint venture company, Sanlam has announced.

Following months of negotiations – Sanlam issued a first cautionary note about the talks in December 2021 – the two groups said yesterday they would through a joint venture company create a financial services group with an extensive footprint across the African continent, excluding South Africa. The parties agreed to remain in the partnership for at least 10 years, a statement from Sanlam said Wednesday.

Sanlam, through its Sanlam Emerging Markets (SEM) subsidiary, already has life, general insurance, and investment management operations in more than 30 African countries, including Morocco, Ivory Coast, Nigeria and Botswana.

Allianz’s insurance portfolio spans 11 countries, excluding South Africa, Egypt, Kenya, Cameroon, and Uganda.

Allianz provides insurance and asset management services in more than 70 countries globally and employs over 155 000 employees worldwide. It has more than 100 years of heritage in Africa, with a presence since 1912 and a strong presence in key African countries such as Egypt, Kenya, Cameroon, and Uganda, with an insurance portfolio spanning 11 countries, excluding South Africa, serving about 2 million customers.

Part of Sanlam’s strategy is to be the leading Pan-African financial services group in Africa.

Sanlam will hold a controlling 60 percent in the joint venture and Allianz 40 percent, with the ability for Allianz to increase its shareholding to a maximum of 49 percent over time.

The general equity value of the joint venture was €2 billion (R33bn), and Sanlam would make assets with a net asset value of €1.3bn (R22bn) available for the joint venture.