Permutations are already emerging on how the tie-up between Sanlam, South Africa’s pan-African insurer, and Allianz, the German global insurer will shape the insurance market in French speaking African countries.
Recall that the proposed tie-up, which is now being tidied up, will bring together their assets in Africa excluding South Africa, and it is now expected that this should upset the existing ranking of insurers in several French-speaking African countries, per Jeune Afrique.
According to monitored wire reports, since the acquisition, in 2018 of Morocco’s Saham, Sanlam and Allianz have been neck and neck at the top of this list in several countries, including Cameroon, Côte d’Ivoire and Senegal.
In Cameroon, in the property and casualty insurance market, the alliance between Allianz and Sanlam should enable them to overtake AXA. Allianz already ranks number one in life insurance in Cameroon.
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In Côte d’Ivoire, Sanlam and Allianz are already the leaders in non-life insurance. In the life segment, Allianz is in the third position and Sanlam, in fourth, in terms of premiums. An alliance between them would allow them to overtake Sunu and NSIA.
The same is true in Senegal, where the combined weight of Allianz and Sanlam would allow them to dislodge Axa from its first rank in non-life insurance and Sonam from its leading position in the life insurance niche.
Allianz and Sanlam had said they had entered into a partnership in order to form a joint venture which will combine their assets on the continent, excluding South Africa.
The joint venture will consist of the business units of Sanlam and Allianz in 29 African countries where the two companies, or at least one of them, are present.
Allianz projections already sees the combination “will be the largest pan-African insurance player and should rank among the top three in the majority of markets where it will be present”.