Sanlam, Africa’s top insurer and largely owned by South African billionaire Patrice Motsepe, has formed a $1.9 billion joint venture with German global financial services business Allianz SE in Africa. This collaboration follows a year of extensive talks and governmental permissions, which were received last September.
Sanlam CEO Paul Hanratty unveiled the partnership during the Sanlam Financial Journalism Awards presentation in Johannesburg. SanlamAllianz, the new business, will provide non-banking financial services in 27 African nations, with an emphasis on increasing savings and investment, which is critical for the continent’s economic progress.
“The Sanlam-Allianz joint venture marks a significant milestone, establishing a platform for future growth in savings and investment across our continent, crucial for economic development,” Hanratty told journalists. “After a year of foundational work, we are set to officially launch the combined, rebranded entity in our key markets within days.”
According to the arrangement, Allianz would merge its African operations, which include majority shares in Jubilee general insurance companies in Kenya, Uganda, and Burundi. Sanlam will contribute its stake in Sanlam Kenya (57.1%) and other African activities, excluding those in South Africa, India, the Middle East, and Malaysia. Namibia will join the transaction later, at which point Allianz may expand its investment to 49 percent, while Sanlam retains control.
The joint venture, known as SanlamAllianz, is valued at around R35 billion ($1.9 billion) and will provide a broader selection of personalized insurance products. Initially, a 60:40 sharing split was agreed upon in May 2022, based on the respective evaluated worth of assets in June 2021. Adjustments to settle the shareholding were disclosed in September of last year.
Allianz Group employs over 157,000 people worldwide, serves 125 million individual and corporate customers in nearly 70 countries, and manages €1.7 trillion ($1.84 trillion) in third-party assets. In fiscal year 2023, Allianz Group’s total business volume was roughly €162 billion ($175.5 billion).
Founded in 1918, Sanlam has a market valuation of R143 billion ($7.6 billion) on the Johannesburg Stock Exchange. Patrice Motsepe, Africa’s first Black billionaire, owns a 7.8 percent stake in Sanlam through his investment company, Ubuntu-Botho Investments, and serves as its deputy chairman.
Sanlam proposes to buy a controlling stake in NMS Insurance Services (NMSIS) from MultiChoice for R1.2 billion ($65.91 million). Earlier this year, the leading insurer announced plans to purchase a majority position in the Shriram Group’s insurance company in India, marking a significant expansion of its operations beyond Africa.
