Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Monday, May 23, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN
$2.1 billion landmark merger between Insurance giants Allianz and Sanlam. www.theexchange.africa

$2.1 billion landmark merger between Insurance giants Allianz and Sanlam. www.theexchange.africa

Insurance giants Allianz, Sanlam sign US$2.1 billion merger

The experience and financial power of two well-known and renowned businesses will be combined, allowing clients throughout Africa to benefit from the combined knowledge and financial strength

by Joseph Kangethe
May 7, 2022
in Investing
0
Share on FacebookShare on LinkedIn
  • Allianz reports that the overall group equity value is estimated to be more than US$2.1 billion, and the new business is likely to rank in the top three in the majority of the areas in which it operates.
  • Initially, Sanlam will retain a 60 per cent stake in the joint venture, with Allianz holding a 40 per cent stake and the option to purchase an additional nine per cent at a later date
  • Insurance penetration in Africa is considerably lower than the global average, standing at 2.78 per cent in 2019 compared to 7.23 per cent globally
  • Only about 1 per cent of the population in Sub-Saharan Africa has insurance coverage

South African insurer Sanlam and German insurance giant Allianz have agreed to create a joint venture that will consolidate both their present and future activities across Africa.

The largest non-banking financial services institution in Africa

The partnership between the Sanlam and Allianz has created the largest pan-African non-banking financial services institution on the continent.

According to a statement by Allianz, the overall group equity value is estimated to be more than US$2.1 billion, and the new business is likely to rank in the top three in the majority of the areas in which it operates. Business segments of both Sanlam and Allianz will be housed under the joint venture, which will operate in the African nations where one or both businesses have a presence.

While South Africa will be excluded from the deal entirely, Namibia will be included at a later date.

Read: Insurtech boom deepening the uptake of insurance in Africa

Initially, Sanlam will retain a 60 per cent stake in the joint venture, with Allianz holding a 40 per cent stake and the option to purchase an additional nine per cent at a later date.

Insurance giants Allianz, Sanlam sign US$2.1 billion merger. www.theexchange.africa
Insurance giants Allianz, and Sanlam sign a US$2.1 billion merger. [Photo/ Allianz Africa]
According to a statement from Sanlam, which is located in Cape Town, “in keeping with both parties’ long-term commitment to the strategic relationship with the continent the parties have committed to staying involved in the joint venture for a period of at least 10 years.”

The joint venture ownership allocation will be determined by the proportionally assessed worth of assets they will be contributing.

The proposed business deal, according to the company, “will enable Sanlam to enhance its capabilities in existing markets while simultaneously expanding its footprint and market-leading positions in certain key jurisdictions on the African continent.”

What Sanlam stands to gain in the partnership

In the partnership with Allianz insurance, Sanlam expects to reap a number of strategic benefits, including knowledge exchange, cost savings, the creation of an integrated platform, and the potential for synergies for both the joint venture and the South African company.

The experience and financial power of two well-known and renowned businesses will be combined, allowing clients throughout Africa to benefit from the combined knowledge and financial strength.

Read: What to expect from medical insurance in Africa post-Covid

Sanlam has a direct ownership interest in financial services firms in 13 countries in sub-Saharan Africa. Owing to its 2018 purchase of SAHAM Finances, it has also earned exposure to the majority of North and West African nations, with the exception of the key Egyptian market, which Allianz will handle due to the company’s presence in Cairo. This has resulted in the establishment of a new pan-African non-banking financial services business, which will operate in 29 African nations as a result.

Among the assets to be transferred are Allianz’s ownership interests in its African subsidiaries, which include majority holdings in Jubilee general insurance operations in Kenya, Uganda, and Burundi, which the company recently bought in cash. Sanlam will contribute its interests in Sanlam Kenya (57.1 per cent) and other activities, as well as its cash reserves. In addition to South Africa and India, the multinational’s businesses in the Middle East and Malaysia will be exempt from the agreement.

Insurance penetration in Africa

According to Sanlam group CEO Paul Hanratty, the proposed joint venture would reinforce their leading position in many major areas that are critical to their African strategy, while also enhancing quality and scale where it counts the most.

Only about 1 per cent of the population in Sub-Saharan Africa has insurance coverage. www.theexchange.africa
Only about 1 per cent of the population in Sub-Saharan Africa has insurance coverage. [Photo/ CGTN Africa]
The fresh collaboration between the two insurance corporate giants will allow Sanlam to expand its operations northward, putting it in direct competition with companies such as NSIA, Sunu, and Axa which still hold significant market share in French-speaking countries such as Côte d’Ivoire Senegal, and Cameroon among others.

Only about 1 per cent of the population in Sub-Saharan Africa has insurance coverage, according to estimates. Insurance penetration in Africa is considerably lower than the global average, standing at 2.78 per cent in 2019 compared to 7.23 per cent globally.

South Africa accounts for around 69 per cent of total insurance premiums in Africa, making it a significant player in the continent’s insurance sector. Other important nations, such as Morocco (6.6 per cent), Kenya (3.3 per cent), Egypt (2.8 per cent), and Nigeria (2.4 per cent), have great potential for insurance uptake.

Read: Britam targets poor Kenyans to grow insurance products uptake

Tags: Allianzinsurance coverInsurance coverage in AfricaInsurance penetration in AfricaSaham FinancesSanlamSouth Africa

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

Joseph Kangethe

I am a journalist who is an enthusiastic tech, business and investment news writer from across Africa. There is always something good happening in Africa but most gets lost in the stereotypes. I tell the stories that matter to the Africans for Africa. Have a tip? You can contact me at [email protected]

Related Posts

Six African nations launch the Africa Green Hydrogen Alliance. www.theexchange.africa
Investing

Renewable energy: Six African nations launch the Africa Green Hydrogen Alliance

May 20, 2022
South Africa retailer Pick n Pay to cut US$187 million in costs in 3 years www.theexchange.africa
Investing

South Africa retailer Pick n Pay to cut US$187 million in costs in 3 years

May 20, 2022
Kenya and Tanzania economic gains from friendly diplomatic relations. www.theexchange.africa
Investing

Kenya and Tanzania: Economic gains from ‘relaxed’ diplomatic stance

May 19, 2022
Next Post
theexchange.africa

Refugee welfare could improve with intra-Africa migration

President Mnangagwa, flanked by Mthulu Ncube and RBZ chief John Mangudya (Photo/ NewsWire)

Zimbabwe: President Mnangagwa's measures to restore investor confidence

Zimbabwe stock exchange reduces circuit breakers (Photo/ ZSE)

Market volatility triggers change of circuit breakers in Zimbabwe's ZSE

Please login to join discussion




This months edition

May Edition

Features

EdTech role in African development
Tech & Business

EdTech’s role in African development

by Kanyali Muthui
May 16, 2022
0

Due to the pandemic, the topic of innovation in education has never been more crucial.  While most developed countries moved...

Read more
investment in African science and technology
Tech & Business

Investing in Africa’s science and technology: Where are we now?

by Kanyali Muthui
May 16, 2022
0

The continent’s digital revolution can largely be driven by building the necessary skills for the short- and long-term future, and...

Read more
Fintech revolution in Africa
Tech & Business

The Fintech Revolution in Africa’s FX Markets

by Kanyali Muthui
May 11, 2022
0

With over 548 million registered mobile money users in sub-Saharan Africa, increased internet access and readily available mobile money solutions,...

Read more
www.theexchange.africa
Countries

US – Nigeria Trade Relations: An Overview

by Wanjiku Njugunah
May 2, 2022
0

Nigeria is currently the United States' 54th largest goods trading partner, with US$7.8 billion in total goods trade as of...

Read more
A previous conference for African Insurtech sector. The Insurtech boom is deepening insurance uptake in Africa. www.theexchange.africa
Tech & Business

Insurtech boom deepening the uptake of insurance in Africa

by june njoroge
May 2, 2022
0

Kenya-based Pula is another distinguished insurtech making waves in the continent. It provides small scale farmers with agricultural insurance and...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In