The West African Insurance Companies Association (WAICA) has applauded the regulatory approval for formation of SanlamAllianz – a joint venture that is expected to create leading Pan-African non-banking financial services company with a presence in 27 countries in Africa.
The Secretary General of WAICA, Davis Iyasere, while speaking on the joint venture, commended the initiative and expressed hope that it would deepen insurance in Africa, particularly in the west African subregion.
He noted that WAICA is ready to partner SanlamAllianz to enhance their presence and ensure that they have seamless operations and regulatory approvals from regulators in the subregion to enable them integrate the entities in WAICA member countries including Ghana and Nigeria.
Sanlam, Africa’s largest non-banking financial services provider, and Allianz, one of the world’s leading insurers and financial services providers today announced that they have received regulatory approvals for the joint venture that would create the leading Pan-African non-banking financial services company with a presence in 27 countries in Africa, adding that the joint venture will operate as SanlamAllianz.
A joint statement issued by Sanlam and Allianz noted that SanlamAllianz’s ambition is to be among the top three players, in both market share and profitability, in the markets where the company will operate.
They submitted that the joint venture is expected to have a combined group equity value (GEV) of approximately R35 billion. 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. 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.
“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,” stated Sanlam group’s chief executive officer, Paul Hanratty.
Christopher Townsend, board member of Allianz SE, commented: “SanlamAllianz has the capability to gain leadership positions in all key markets in both general insurance and life segments. 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.”
The statement said the priorities of SanlamAllianz are to:
- Drive financial inclusion, focusing on the number of lives touched, 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;
- Provide the best of two leading multinational brands with enhanced offerings in property and casualty as well as life insurance offerings through innovation and the additional capabilities enabled by greater economies of scale
- Grow the life and general insurance businesses through product, service and distribution innovation.
“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. We believe that SanlamAllianz has all the ingredients to succeed on this new journey,” said Hanratty.
Heinie Werth, the current CEO of Sanlam Emerging Markets, has been appointed as the CEO of SanlamAllianz. In a career spanning 25 years at Sanlam, Werth has held various executive positions within the group, including that of finance director.
