INSURANCE : Sanlam/Allianz Run 42.3 % of Cameroon’s Market
Since September 5, 2023, the German transnational insurance company Allianz, and the South African giant in the Sanlam sector, have announced the conclusion of their merger. A marriage that now allows them to control the market in 27 countries on the continent and to offer a full range of insurance products and financial services to individuals and companies.
In Cameroon, these two insurance groups operate in damage branches “Fires, accidents and miscellaneous risks” (Property and casualty) and Life. The agreement between the two suddenly comes at the end of the period of approval of the merger by the Inter-African Conference of Insurance Markets, the regulator of the sector in Central and West Africa.
This merger gives birth to a national insurance giant which leads to a new configuration of the Cameroonian market in all branches combined. For example, Allianz Life occupies the first position in the ranking of the best life assurers with 28.62 % of the local market share, according to the Ministry of Finance. As for Sanlam, its local subsidiary controls 3.48 % of this segment. From an arithmetic point of view, the merger of the two companies represents more than 32 % of the market shares in the Life branch.
In the property and casualty segment, the two companies control respectively according to data from the insurance directorate of the Ministry of Finance as of December 31, 2020, 9.04% of market shares for Allianz Cameroon, and 5.28% Sanlam Cameroon. The two insurers, after this successful merger, now account for 14.32% of the market shares in the damage branch. Which corresponds to a global control of 42.32% of the entire insurance market in Cameroon.
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In the property and casualty branch, the local subsidiary of the new German-South African group, closely follows the French AXA, leader of the Damage branch with market shares of 14.72 %.
In addition, on the property and casualty insurance market in Cameroon, the alliance between Sanlam which achieved 9 billion FCFA in premiums issued in the 2019 segment and Allianz Cameroon 19.9 billion premiums, should allow them to double the local subsidiary of the French giant AXA, with more than 30 billion in revenue in prospect. The Frenchman was the leader until now with 20.7 billion FCFA in revenue.
Allianz Cameroon achieved at the end of the 2021 financial year, a turnover of more than 20 billion FCFA in the life branch and made the payment of more than 17 billion FCFA in claims. In the non-life segment, during the same period, it is 14 billion FCFA turnover. The company announces that it has settled the claims for an amount of 05 billion FCFA, and has concluded 17,574 new contracts.
As for the Sanlam Group, its Damage subsidiary is a public limited company with a capital of 4 billion FCFA fully paid up. Its average turnover amounts to nearly 10 billion FCFA. The Company has a commercial network of 25 points of sale across the 10 regions of the country.
Sorelle Ninguem
