The newly launched SanlamAllianz joint venture will provide insurance and financial services in 27 African markets, creating a R35 billion pan-African non-banking financial services company, Sanlam said yesterday.
Sanlam said that all the conditions for its proposed transaction with global integrated financial services group Allianz SE had now been met.
On May 4, 2022 Sanlam and Allianz SE had entered into agreements for a long-term joint venture arrangement regarding their operations on the African continent, outside of South Africa.
Sanlam and Allianz would contribute their African operations into a new joint venture company.
The initial shareholding split of Sanlam and Allianz in the JVCo was agreed at 60:40, respectively, although there were provisions for post-closing adjustments for a final split.
Sanlam’s operations in Namibia would be contributed to JVCo later, and at a time when Allianz would also have an option to increase its shareholding up to 49%.
The joint venture will operate as SanlamAllianz, and the combined equity value (GEV) of the joint venture was about R35bn.
Heinie Werth, the current CEO of Sanlam Emerging Markets, has been appointed the CEO of SanlamAllianz.
Sanlam said retail and corporate clients would benefit from a broader offering of insurance products tailored to their needs, as well as best-in-class financial solutions.
Products and services would be available in the markets where one or both companies currently operate.
“We are confident 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,” Sanlam CEO Paul Hanratty, said in a statement.
“With this powerful 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,” Allianz SE board member Christopher Townsend said.
“The joint venture 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,” said Hanratty.
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