Sompo International strengthens position in Africa through alliance with Sanlam Limited and SAHAM Finances
Sompo International Holdings Ltd. (SI), a Bermuda-based specialty provider of property and casualty insurance and reinsurance and wholly owned subsidiary of Sompo Holdings, Inc. (Sompo), has launched a new strategic partnership in Africa.
Sompo International will form alliances with both Sanlam Limited and SAHAM Finances through a partnership agreement executed by Sompo Japan Nipponkoa Insurance Inc. (SJNK).
This partnership will give access to new markets by allowing Sompo to leverage the experience and existing footprint of Sanlam Limited and SAHAM Group’s insurance subsidiaries.
Sanlam Limited is the largest financial group in South Africa and its subsidiaries Santam Limited and Sanlam Emerging Markets Limited are leading financial service providers of life and non-life insurance. Santam Limited is the largest non-life insurance company in South Africa by gross written premiums. Sanlam Emerging Markets, which was established in 2011, has life and non-life insurance operations in 14 of the fastest developing African countries.
SAHAM Finances is the largest Pan African insurance group excluding South Africa. It has operations in 26 countries where it provides insurance, reinsurance, assistance and third party administration (TPA) services.
Since establishing an office in Johannesburg in April 2014, SJNK has expanded its customer support and insurance market research system throughout Africa. The new partnership will enable Sompo to better support the African operations of their Japanese customers as well as to expand their distribution of new products to local businesses.
Junichi Tanaka, Managing Executive Officer, Sompo Holdings Ltd. and SJNK said, “We are delighted to announce this partnership today with two of the largest and best known financial groups in Africa. This alliance allows us to build Sompo’s reputation as a strong player in Africa by expanding our support to Japanese customers entering the continent.
Through our new partners we will now have access to 27 African countries in total, more than double the presence of our peers across the continent, providing us with the largest scope of coverage in Africa.”
Nigel Frudd, Chief Strategy Officer, Sompo International commented, “This strategic collaboration with Sanlam and Saham will allow us to bring the extensive global experience and broad product knowledge that SI possesses to our African clients. Many of SI’s specialty insurance products, such as crop, energy and weather risk, will be critical to aiding the future development of the continent. We look forward to strengthening the strong relationships with our partners through personnel exchanges as well as technical support across the region.”
The size of the insurance market in Africa is $20 billion and, while only 1% of the total global market, with compound annual growth projected at 3.2% there remains considerable scope for development of this emerging insurance market.
Furthermore, Japanese private/public investment into African countries is expected to be $30 billion , with some private companies such as construction firms looking to actively promote high-quality Japanese infrastructure technologies to African countries.