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Sanlam and MTN Group’s insurtech alliance has been sanctioned by regulatory authorities, paving the way for the duo to build and develop digital insurance and investment offerings.
MTN announced today that the strategic alliance had reached a significant milestone with the fulfilment of the regulatory, competition and other requirements.
The effective date of the transaction is 31 October 2022.
The telco partnered with JSE-listed financial services group Sanlam in 2019 to provide a range of financial services via MTN’s digital platforms.
The partnership will see Sanlam, which is the largest insurer on the African continent, offer its insurance products on MTN’s mobile app, website and USSD platforms.
Today, the mobile operator announced the strategic alliance will be implemented through MTN Group’s insurtech platform aYo Holdings and each partner will hold 50% of aYo.
Through aYo, MTN says, the alliance “will continue to build and develop digital insurance and investment offerings that provide people across Africa with easier access to Sanlam’s products, particularly those people who have typically been unable to access traditional distribution channels.
“We are confident this alliance will build and leverage the strengths and assets of both companies to establish a digital insurance and investment capability across Africa,” says MTN group president and CEO Ralph Mupita.
He adds the alliance was aligned to the group’s strategic intent to lead digital solutions for Africa’s progress.
Sanlam group CEO Paul Hanratty says he is delighted to reach such a critical stage in the company's drive to deepen penetration of insurance and investment products across Africa through strategic partnerships.
“We are confident that a strong foundation is in place for this alliance. Sanlam believes this strategic alliance with the MTN Group will make a considerable contribution to financial inclusion in Africa.
“By leveraging off the MTN brand, Sanlam’s licensing, broad product capabilities, financial services expertise and both group’s geographical footprint across the continent, the alliance has the potential to pre-empt and adapt to digital disruption in markets where both companies operate," says Hanratty.
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