Sanlam, Jubilee Allianz Merger gets green light from regulator

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The Insurance Regulatory Authority (IRA) has approved the proposed merger between Sanlam General Insurance Uganda and Jubilee Allianz General Insurance, clearing the way for the two firms to combine their operations.

The IRA granted the approval after months of preparations, following the 2023 announcement of the Sanlam-Allianz joint venture. The deal spans 27 African countries with a combined enterprise value of just under $2b.

Sanlam’s Head of Marketing and Channel Development, Dr. Donato Laboke, confirmed the development to New Vision in a phone call.

The Ugandan portion of the merger is expected to reshape the general insurance market by combining the resources and expertise of two major financial groups.

In Uganda, according to figures provided by the merging companies to the COMESA Competition Commission in 2023, Allianz and Sanlam hold an estimated market share of 10-20% each.

Before the merger, these were the largest players, and the transaction will result in a significant increase in market share, with the merged company expected to hold 20-30%, according to COMESA.

The companies state that the move will create a stronger platform to serve individuals, SMEs, and corporate clients, while improving service delivery and expanding access.

Some of the benefits include a wider range of products, enhanced tools and training for agents and brokers, and new financial inclusion solutions aimed at underserved segments. They also plan to invest in local talent and technology.