Insurance giants Sanlam and Allianz have joined forces to create “the largest non-banking financial services entity” in Africa.
The unnamed joint venture will house business units from both companies in the 29 African countries where either firm currently has a presence.
Namibia will be included at a later date and South Africa will be excluded from the agreement.
Under the partnership, Sanlam and Allianz will merge current and future operations across the continent, they said.
The joint venture is expected to have a combined total group equity value in excess of ZAR33bn (£1.7bn, $2.2bn, €2bn).
The chairmanship of the entity will rotate every two years between the two insurers, while its chief executive will be named in due course.
The partnership is subject to customary conditions, including regulatory approvals for each jurisdiction.
Sanlam Group chief executive Paul Hanratty said: “In line with Sanlam’s stated ambition to be a leading Pan-African financial services group, the proposed joint venture will enable us to take a significant step towards realising that ambition. 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.”
Christopher Townsend, member of the board of management of Allianz, added: “In accordance with our enterprise strategy to expand our leadership position through scale and new partnership models, Allianz is pleased to accelerate its growth in this important region through a partnership with the undisputed market leader.
“Sanlam’s capabilities extend our local reach and market penetration, and the joint venture allows us to establish leading positions in key growth markets for Allianz.”