Sanlam, Africa’s largest non-banking financial services provider, and Allianz, one of the global insurance and financial services leaders have got approvals from regulators to merge their operations in 27 African countries including Uganda.
The two have announced that they have received regulatory approvals for the joint venture that will create the leading Pan-African non-banking financial services company mainly dealing with Insurance.
The joint venture set to operate as Sanlam Allianz, aims to be among the top three players, in both market share and profitability in those markets, with a total equity of 1.84 billion dollars (6.876 trillion shillings).
The two companies are currently negotiating the shareholding structure, but earlier, it had been reported that they would share the venture at a ratio of 40:60. Allianz entered Uganda and East Africa through a 2020 deal in which it acquired 66 percent of Jubilee Holdings and now also operates in Burundi, Tanzania, Mauritius and Kenya.
On the other hand, Sanlam has operated insurance and other risk related services in Uganda since 2010.
Speaking about the deal, Paul Henratty, Sanlam Group Chief Executive said retail and corporate clients will benefit from a broader offering of insurance products tailored to their needs as well as best-in-class financial solutions. “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,” added Hanratty.
Allianz is expected to contribute to the new venture, its shares in its African subsidiaries including majority stakes in Jubilee general insurance in Uganda, Burundi and Kenya which it acquired last year. Provisions have been included in the transaction agreements for certain adjustments to be made afterwards, to obtain the final joint venture company shareholding split, according to Sanlam.
“Sanlam Allianz has the capability to gain leadership positions in all key markets in both general insurance and life segments. We want to unlock the potential of multiple fast growing African markets and access a wider range of customers, particularly in the corporate segment,” said Christopher Townsend, board member of Allianz SE.
Sanlam Allianz’s priorities are to drive financial inclusion by providing greater access to products and services through digital innovation and leveraging their telecommunications and bancassurance partnerships to create new opportunities across the Africa region.
It will also 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”.
