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Key Point
- Sanlam and Allianz finalize a $1.9-billion joint venture to create a Pan-African financial services entity spanning 27 countries.
- The Sanlam-Allianz venture will integrate operations across Africa, offering a wider range of insurance products under the SanlamAllianz brand.
- The joint venture aims to boost savings and investment across Africa, with future plans for market expansions and acquisitions.
Sanlam, Africa’s leading insurer, partially owned by South African billionaire Patrice Motsepe, has partnered with German multinational financial services company Allianz SE to form a $1.9 billion joint venture in Africa. This venture follows a year of extensive negotiations and regulatory approvals received last September.
Sanlam CEO Paul Hanratty announced the venture during the Sanlam Financial Journalism Awards ceremony in Johannesburg. The new entity, SanlamAllianz, will provide non-banking financial services across 27 African countries, focusing on growth in savings and investment crucial for the continent’s economic development.
“The Sanlam-Allianz joint venture marks a significant milestone, establishing a platform for future growth in savings and investment across our continent, crucial for economic development,” Hanratty stated. “After a year of foundational work, we are set to officially launch the combined, rebranded entity in our key markets within days.”
Allianz and Sanlam seal $1.9-billion African insurance joint venture
Under the agreement, Allianz will integrate its African operations, including majority stakes in Jubilee general insurance businesses in Kenya, Uganda, and Burundi. Sanlam will contribute its interests in Sanlam Kenya (57.1 percent) and other African operations, excluding those in South Africa, India, the Middle East, and Malaysia. Namibia will join the deal later, at which point Allianz may increase its stake to 49 percent, with Sanlam retaining control.
The joint venture, known as SanlamAllianz, is valued at approximately R35 billion ($1.9 billion) and will offer a wider range of tailored insurance products. Initially, a 60:40 shareholding split was agreed upon in May 2022, based on the relative appraised value of assets as of June 2021. Adjustments to finalize the shareholding were announced in September last year.
Motsepe-linked Sanlam makes aggressive push into global insurance market
Allianz Group, with over 157,000 employees worldwide, serves 125 million private and corporate customers in nearly 70 countries and manages €1.7 trillion ($1.84 trillion) in third-party assets. In fiscal year 2023, Allianz Group achieved a total business volume of approximately €162 billion ($175.5 billion).
Founded in 1918, Sanlam boasts a market capitalization of R143 billion ($7.6 billion) on the Johannesburg Stock Exchange. Patrice Motsepe, Africa’s first Black billionaire, holds a 7.8-percent stake in Sanlam through his investment vehicle, Ubuntu-Botho Investments, and serves as the deputy chairman.
Sanlam recently announced plans to acquire a controlling stake in NMS Insurance Services (NMSIS) from MultiChoice in a deal valued at R1.2 billion ($65.91 million). Earlier this year, the leading insurer unveiled plans to acquire a controlling stake in the Shriram Group’s insurance business in India, signaling a significant move to expand its footprint beyond Africa.
