(Ecofin Agency) - The two groups intend to create the largest African non-banking financial services entity. 

Sanlam, Africa’s largest insurance company, announced Wednesday, May 4, an agreement with Allianz “to combine current and future operations across Africa.” According to a joint release, the agreement aims to “create the largest pan-African non-banking financial services entity on the continent.” 

The agreement will be finalized once it is approved by regulators of the various markets where the two groups operate. According to data provided by Capital IQ, the two groups are present in 29 countries.

 Allianz is expected to own 40% of the joint venture, with the possibility to raise the stake to 49%.

As for Sanlam, it will consolidate its status as the leading insurance group in Africa with a 60% stake. The joint venture does not integrate Sanlam’s South African operations, which are by far the most important, the Namibian subsidiary, and Continental Re it acquired by taking over Morrocan group Saham. 

Based on June 2021 data, the joint venture will be valued at more than €2 billion (US$2.1 billion). There is one unknown factor, however: the impact the project will have on the two groups. For 2021, Sanlam Limited posted a US$13.7 billion turnover.