Back to the complete issue
Tuesday, 10 May 2022

Allianz + Sanlam merge African operations

Allianz and South Africa’s Sanlam are merging their operations in Africa to create “the largest pan-African non-banking financial services entity on the continent,” the companies announced in a joint press release (pdf). The newly formed joint venture aims to accelerate the two companies’ growth across their markets in the continent, particularly life ins., which is characterized by a low penetration rate, Allianz Egypt CEO Ayman Hegazy told Enterprise.

The joint venture is expected to have an estimated value of ZAR 33 bn (c. USD 2.05 bn), and will operate in the 29 African countries where one or both companies have a presence. Sanlam will continue to operate on a standalone basis in South Africa, where it is headquartered, and Namibia is set to be included at a later stage.

The JV hopes to offer a variety of ins. products, accelerate product innovation, and facilitate financial inclusion in African markets with high growth rates, in addition to improving access rates to life and general ins., Hegazy told us. This will be done by leveraging Sanlam’s expertise in Africa and Allianz’s ins. solutions for multinationals.

The chairmanship of the joint venture partnership will rotate every two years between the two companies, and the CEO will be announced at a later stage. The agreement is still pending regulatory approval.

What this means for Allianz Egypt: The group’s subsidiaries — Allianz Ins. and Allianz Life — will continue their normal operations under the same board of directors, Hegazy said. The company is currently in the process of obtaining local approvals for the merger.

This marks Sanlam’s first entry into Egypt after eyeing our market for some time. The insurer has had plans to expand into Egypt and Morocco since 2019, and was at one point looking to take an equity stake in an undisclosed Egyptian player.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.