Sanlam, the largest non-banking financial services company in Africa, and Allianz, one of the world’s leading insurers and asset managers, have agreed to combine their current and future operations across Africa to create the largest Pan-African non-banking financial services entity on the continent.

The partnership aims to increase life and general insurance penetration, accelerate product innovation and drive financial inclusion in high-growth African markets, according to officials.

Sanlam’s areas of expertise include life and general insurance, financial planning, retirement, investments, and wealth management. The group is present in about 40 African and international countries.

So far, Sanlam has over 250,000 clients in Rwanda after its penetration in the local market following the full acquisition of SORAS in 2019.

Allianz Group is one of the world's leading insurers and asset managers with 126 million private and corporate customers in more than 70 countries, with a century of presence in Africa.

Paul Hanratty, CEO of Sanlam Group said the proposed joint venture will enable them to take a significant step towards becoming a leading Pan-African financial services group.

"It will also strengthen our leadership position in multiple key markets that are core to our Africa strategy, building quality and scale where it matters. We are delighted to have Allianz as partners, and believe their expertise and financial strength will add tremendous value to our businesses,” he added.

Christopher Townsend, Managerial board member of Allianz SE, said: "Allianz is pleased to accelerate its growth in this important region through a partnership with the undisputed market leader.”

"Further, Sanlam shares our company values, our purpose of securing the future for our clients, and our long-term, generational approach to growing in new markets.”

The joint venture will house the business units of both Sanlam and Allianz in the African countries where one or both companies have a presence.

However, South Africa is excluded from the agreement. Namibia will be included at a later stage, officials noted in a statement.

The entity is expected to have a combined total group equity value (GEV) in excess of 33 billion South African rand (approximately 2 billion euros).

The chairmanship of the joint venture partnership will rotate every two years between Sanlam and Allianz and the CEO of the entity will be named in due course, cited the statement.