Insurance company Sanlam is looking to hasten the growth of its African business via its joint venture partnership with Allianz, reported Business Daily Africa.
In May 2022, Sanlam and Allianz reached an agreement to merge their operations to create an insurer with operations in 29 markets across Africa.
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As per the report, in three months, the firms are expected to commence their ten-year partnership by combining their businesses spread across numerous markets, including their local subsidiaries Sanlam Kenya and Jubilee Allianz General Insurance Kenya.
“Approvals for the Allianz Joint Venture remain on track, and we expect implementation around mid-2023,” Sanlam was quoted by the publication as saying in a trading update.
“The African portfolio will be considerably expanded and diversified, with reasonable cost, capital and revenue synergies, through the creation of a joint venture with Allianz (subject to regulatory approvals).”
Sanlam will hold a 60% stake in the joint venture, and Germany-based Allianz will control the remaining 40%.
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By GlobalDataUnder the agreement, Allianz will contribute its shareholding in its African operations.
These include majority stakes in Jubilee general insurance businesses in Kenya, Uganda, and Burundi which it bought recently.
South Africa-based Sanlam will contribute its ownership stake (57.1%) in Sanlam Kenya as well as other businesses.
Sanlam’s operations in South Africa, India, the Middle East, and Malaysia are not included in the deal.
There is currently no clarity if the JV will feature asset transfer or go beyond to have complete ownership or even involve the merging of the businesses in which the entities will hold controlling interests in the several markets they operate, reported the publication.
