Sanlam Allianz Joint-Venture Insurance

His name has not yet been revealed and the leader will be appointed “In time”, but the new entity that will bring together the African business of Sanlam and Allianz is already announcing the colors of a continental leadership. Indeed, the South African and German insurance giants announced on Wednesday, May 4, a joint venture of their African activities outside South Africa. The pan-African entity has a combined value of about $ 2 billion and covers 29 pay. “The joint venture will allow us to take an important step towards achieving this ambition[foragroupofAfrican-fundedfinanceservices”[tobeagroupoffinancialservicesforAfrican-first-rate[afiungrupdeserviciifinanțatoripanafricaindepremierplan”[d’êtreungroupedeservicesfinancierspanafricaindepremierplan »said Paul Hanratty, CEO of the Sanlam Group. “That, he addedIt also strengthens our leadership position on several key pieces that are at the heart of our strategy in Africa » .

Founded in 1917, Sanlam has long been content with English-speaking Africa. And even when it thought of gaining international power, the South African company first turned to the West. In 2018, a turning point is underway with the acquisition of the Moroccan Saham (whose name should actually change this year) which immediately multiplied the entries in West and Central Africa. In 2021, the firm had its highest turnover since the acquisition of Saham: 200 billion rand, or more than $ 12.6 billion.

Christopher Townsend, a member of the Allianz SE board, comments on the new joint venture “A new partnership model”with an insurer who “Share values”of the German group. It is purely and simply “It is accelerating growth in this important region »said the leader, who is among those who approved the appointment of Burkinabè Delphine Traoré as head of Allianz Africa last November.

Towards a certain reconfiguration?

Thus, concluding five months after the start of talks in December, the Sanlam-Allianz deal reconfigures an African insurance sector. This continental market weighs nearly $ 68 billion in premium terms, of which the lion’s share (72%) belongs only to South Africa, which enjoys strong insurance penetration at the national level. With the rainbow nation excluded from the agreement, the Sanlam-Allianz joint venture ranks on the remaining (28%) share of about $ 19 billion, on which Morocco is so far. Note that the Sheriff’s Kingdom is one of the markets where both companies are already present.

Although the markets are not particularly moved by the announcement this Wednesday of this joint venture (Sanlam listed on the Johannesburg Stock Exchange (JSE) and Allianz on the Frankfurt Stock Exchange), it goes without saying that the implementation of the new entity and its top management will be closely followed.