South Africa's Sanlam Group and Germany's Allianz have agreed to combine operations across Africa in a joint venture with an equity value of about Sh243.7 billion to operate in 29 countries excluding South Africa.
Namibia will be included in the deal at a later stage.
The firms said in a statement on Wednesday that the combined operations will create a pan-African non-banking financial services that are expected to be ranked in the top three in the majority of the markets where the entity will operate.
Sanlam Group CEO Paul Hanratty said that the entity will aim to combine Sanlam’s understanding of the African market with Allianz’s global reach and insurance solutions to increase life and general insurance penetration, accelerate product innovation and drive financial inclusion in high-growth African markets.
He added that the deal will also strengthen the firm's leadership in key African markets core to their Africa strategy.
The chairmanship of the joint venture partnership will rotate every two years between Sanlam and Allianz. The CEO of the entity will be named soon.
“Sanlam’s capabilities extend our local reach and market penetration, and the joint venture allows us to establish leading positions in key growth markets for Allianz,” said Allianz SE board member Christopher Townsend.
The new entity is waiting for regulatory approvals to start operating.