Allianz, Germany’s multinational financial services provider, will reportedly hold a 40% stake in its $2 billion joint venture with South Africa’s Sanlam Group.
Allianz and Sanlam agreed to combine their assets in Africa in May, creating the largest pan-African non-banking financial services business on the continent. The move is expected to help the partnership expand across Africa with operations in 29 countries.
The two companies will fold their respective African operations—excluding those operating in South Africa—into a new unit majority controlled by the Cape Town-based Sanlam. The duo agreed to remain invested for at least 10 years.
An official at Allianz told Enterprise Monday that the German firm could later increase its shareholding in the joint venture to 49% and obtain management rights without disclosing further information.
Allianz Egypt won’t be affected by its parent company’s merger with Sanlam. The group’s subsidiaries— Allianz Insurance and Allianz Life—will continue their normal operations under the same board of directors, Ayman Hegazy, Allianz Egypt CEO previously told Enterprise.
The partnership aims to increase life and general insurance penetration, accelerate product innovation and drive financial inclusion in high-growth African markets by leveraging Sanlam’s expertise in Africa and Allianz’s global capabilities and insurance solutions.