Sanlam Allianz Holdings Kenya, the new name for Sanlam Kenya PLC, marks a new chapter for a company that started operating in Kenya on October 26, 1946 as Indo Africa Insurance Company Limited.
The firm, which was initially offering life insurance only, listed on the Nairobi Securities Exchange (NSE) in 1963 and changed its name to Pan Africa Insurance Company.
Once an insurer with the largest market share in Kenya, Sanlam has been overtaken by the likes of CIC, APA, GA, Old Mutual, Jubilee and ICEA Lion.
Now it dreams of reclaiming this lost insurance crown thanks to the recent joint venture between South Africa’s Sanlam Limited and Germany’s Allianz SE.
Sanlam Allianz Holdings Kenya CEO Patrick Tumbo reflects on the decades of the company in the market, what the new deal means in terms of the company structure and the ambitions for the new entity.
What is the rationale for this transaction?
We started as a life company in 1946 and then moved on and became the leader in the life business for many years. Then we lost it.
We have now reorganised again to be the leaders. We have refined our strategy and in three to four years, you will see us at the top. But it might happen earlier.
We honour the healthy legacy which was built on nearly eight good decades of service, trust and enduring commitment to Kenya and now the idea is to make this journey even better.
At independence we made history as the first insurance company to list on the NSE, demonstrating our commitment to transparent growth and shared prosperity.
Pan Africa Insurance was for the longest the top insurer in the country before losing out. The new brand is a chance for us to start the journey of going back to the number one spot. We were here at independence and we want to be here for years to come.
We have successfully finalised a strategic regulatory approved merger of Sanlam General and the Jubilee-Allianz General into Sanlam Allianz General. We have streamlined operations and are ready to move the market and position ourselves perfectly for growth. Our history is defined by foresight, resilience and pursuit of scale. This has prepared us for the new era that begins now.
What does the shareholding structure look like after this joint venture?
To be more efficient now, we have to be nimble. The listed company remains. It was founded by the owners of the life company. They diversified out but the life company continues to be the flag bearer of the listed company.
We have diversified in a manner that the investments company— Sanlam Allianz Investments— will now be operating on its own. We will have the Sanlam General Insurance, also operating on its own. The life entity will also be operating on its own.
But together, these companies will be bearing the Sanlam Allianz brand. When you grow up, you move from the homestead. So, these companies have come of age.
The ownership structure in Kenya remains a bit complicated, whereby the law insists that one third must be owned locally. Sanlam Allianz Holdings will own all the entities.
Instead of holding another holding company, now Sanlam Allianz Holdings will own directly the Sanlam Allianz Investments, Sanlam Allianz General and Sanlam Allianz Life which will remain the listed entity so that the shareholders locally continue with what they started.
What does this rebrand mean for the market besides the name change?
This is not merely a change of the logo or a change of the name, but the culmination of a powerful venture between two titans—the African giant and the global giant.
Sanlam brings expertise in Africa and Allianz brings world leadership in insurance and asset management. Therefore, this for us, is about bringing together over a century of global excellence and technical innovation.
When you look at the two muscles coming together and with the expertise we have, we are prepared to take Sanlam Allianz to the top.
This new entity signifies unmatched expertise with an understanding of Kenya and Africa, allowing us to provide a broader, more innovative portfolio of financial solutions and risk solutions. We will leverage this immense scale and capital to underwrite giant risks and guarantee security that our clients demand.
You have talked of this deal giving you the capacity to underwrite giant risks. How much money has flowed into these entities as a result of this transaction and how does the capital look like now?
Some things are confidential and as a listed entity, there are things we cannot disclose publicly. But for all our entities they have a capital ratio of more than the prescribed minimum of 200 percent.
We are very stable now. When we publish financials, you will see the numbers. When we talk about scale and capacity, you just need to check who is backing us. The way we are structured, the balance sheet backing the risks that we underwrite in this market is massive.
Sanlam was once the top insurer in Kenya but lost out this position and is not even in the top five when you look at general and life business. What does the actualisation of this new venture mean?
Our goal is very clear— to be among the top one three financial services players in terms of market share and profitability, with the ultimate aim of being second to none.
When we look at culture, we realise that strategy is meaningless without the right people and the right culture. Our true strength lies in how we execute and live our promise and our purpose.
