Japan’s Sompo International Holdings Ltd. is now in a strategic partnership that will allow the company gain access to the African market.
The company will alongside Sanlam Limited and SAHAM Finances gain access into the insurance market under the trading name- Sompo Japan Nipponkoa Insurance Inc.
This partnership will allow 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.
The size of the insurance market in Africa is USD20 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 USD30 billion, with some private companies such as construction firms looking to actively promote high-quality Japanese infrastructure technologies to African countries.