Non-banking financial services group Sanlam and insurance and asset management group Allianz will create a pan-African non-banking financial services joint venture (JV) called SanlamAllianz with a presence in 27 African countries, excluding South Africa.

The JV is expected to have a combined group equity value of about R35-billion. Retail and corporate clients of both companies will benefit from a broader offering of insurance products tailored to their needs as well as best-in-class financial solutions.

Further, products and services will be available in the markets where one or both companies currently operate. Namibia will be included at a later stage, while South Africa is excluded from the agreement.

SanlamAllianz’s ambition is to be among the top three players, in terms of both market share and profitability, in the markets where the JV company will operate.

SanlamAllianz's priorities include driving financial inclusion by focusing on the number of lives touched, and providing greater access to products and services through digital innovation. It will also leverage its telecommunications and bank assurance partnerships to create new opportunities across Africa.

Additionally, the JV will provide enhanced offerings in property and casualty, as well as life insurance offerings through innovation and the additional capabilities enabled by greater economies of scale.

The partnership is also aimed at growing the life and general insurance businesses through product, service and distribution innovation.

Sanlam Emerging Markets CEO Heinie Werth has been appointed SanlamAllianz CEO. He has a career spanning 25 years at Sanlam and has held various executive positions within the group, including that of FD.

“SanlamAllianz has the capability to gain leadership positions in all key markets in both general insurance and life segments. With this partnership, we want to unlock the potential of multiple fast-growing African markets and access a wider range of customers, particularly in the corporate segment. Allianz is deepening its commitment to the vibrant continent and is building on our 100-year legacy here,” says Allianz board member Christopher Townsend.

“We are confident that SanlamAllianz will create significant value for clients, shareholders and other stakeholders. The combined expertise and resources of our respective companies will enable us to provide innovative solutions and services to meet the ever-evolving needs of our clients on the African continent,” adds Sanlam Group CEO Paul Hanratty.

“The JV marks a significant step forward in further implementing Sanlam group’s strategy that we have pursued over the past few years. Opportunities to improve insurance penetration in Africa abound for those with the right combination of financial strength, scale, new technology and a tangible commitment to the customer. We believe that SanlamAllianz has all the ingredients to succeed on this new journey,” he comments.