Sanlam’s joint venture with Europe’s largest insurer, Allianz, has set an ambitious target of doubling earnings by 2030, which will see the pan-African insurance group rejig its portfolio and make a foray in new jurisdictions across Africa.
SanlamAllianz operates in 26 countries on the continent, excluding SA where Sanlam continues to operate on a stand-alone basis.
The joint venture, led by long-time Sanlam executive Heinie Werth, said it will achieve its target by “selectively entering new high-potential markets and exiting unattractive ones”, focusing on being in the top three in each market it does business.
“Africa represents one of the most compelling long-term growth opportunities in the global insurance landscape,” Werth said. “With low penetration, strong GDP growth and a youthful, digitally connected population, the continent is poised for transformation.
“SanlamAllianz is primed to turn this potential into sustained value, by delivering relevant products, scaling smart distribution, and building digital ecosystems that bring insurance within reach of millions more Africans.”
East and West Africa were expected to be the main engines into 2030, the group said.
Werth, previously CEO of Sanlam Emerging Markets, has said the company would tap shareholders if it were to pursue big transactions in, say, Nigeria, Kenya or Ghana.
One of the drawcards for Sanlam in pursuing the joint venture was the Egyptian market, a long-time target of the Cape-Town based group.
Sanlam, which has a JSE market capitalisation of about R192bn, on the JSE, was at one point looking to take an equity stake in an undisclosed Egyptian company. With a population of more than 100-million people and annual population growth of 1.7% Egypt has become an attractive market, particularly for SA businesses.
Target
The Sanlam group, meanwhile, has set a target of achieving a 20% return on equity by 2030. CEO Paul Hanratty’s three-pronged strategy to grow its dominance in its home market, expand in the rest of the continent and build a scalable non-banking financial institution in India, has seen the company active in M&A.
The board last year extended Hanratty’s contract to the end of December 2027.
Hanratty said he is confident the group is well positioned to achieve its targets, including scaling up the Indian business .
“Sanlam is uniquely positioned as a quality growth stock. With strong platforms, prudent capital allocation and bold growth vectors across SA, India and pan-Africa, we are confident of delivering attractive returns while supporting inclusive prosperity,” he said.
“Our purpose remains our driving force and that is to help our clients build and protect their wealth, and to allow continuity to future generations.”
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