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SA's largest insurer, Sanlam, said on Tuesday all pre-conditions necessary for its joint venture with German giant Allianz have been met, with the two merging their African operations outside of SA.
Sanlam first announced the tie-up in May 2022, creating a vehicle to provide insurance and financial services in 27 African markets that will operate under the name SanlamAllianz.
Sanlam holds 60% of the new joint venture, with Allianz owning 40% - with the ability to increase its shareholding to a maximum of 49% over time. The transaction became effective on Monday.
READ | Sanlam, Allianz to create new R33bn African joint venture
SanlamAllianz’s ambition is to be among the top three players, in both market share and profitability, in the markets where the company will operate, they said in a joint statement.
The joint venture is expected to have a combined group equity value (GEV) of approximately R35 billion. Retail and corporate clients will benefit from a broader offering of insurance products tailored to their needs as well as best-in-class financial solutions.
Namibia will be included at a later stage, while South Africa is excluded from the agreement.
"We are confident that SanlamAllianz will create significant value for clients, shareholders and other stakeholders," Sanlam group CEO Paul Hanratty said in a statement.
"The combined expertise and resources of our respective companies will enable us to provide innovative solutions and services to meet the ever-evolving needs of our clients on the African continent."
"SanlamAllianz has the capability to gain leadership positions in all key markets in both general insurance and life segments," said Christopher Townsend, a board member of Allianz SE.
"With this powerful partnership, we want to unlock the potential of multiple fast growing African markets and access a wider range of customers, particularly in the corporate segment. Allianz is deepening its commitment to the vibrant continent and is building on our 100-year legacy here."
