When it comes to the financial services sector in South Africa, two names often come up: Sanlam and Old Mutual. Both companies are giants in the industry, but how do they compare in terms of size and influence?
Revenue and Market Position
In 2022, Old Mutual secured the top spot among Africa’s insurers, with a remarkable 32% increase in revenue. This growth solidified its position as the leading financial services provider on the continent. On the other hand, Sanlam, which ranks second, has been strategically refining its focus and expanding its reach through a significant partnership with Allianz.
Strategic Partnerships and Expansion
Sanlam’s partnership with Allianz, established last year, has been a game-changer. This collaboration, known as SanlamAllianz, has extended Sanlam’s operations to 27 African countries. This strategic move is part of Sanlam’s broader vision to enhance its footprint across the continent and compete more effectively on a global scale.
Financial Performance
While Old Mutual leads in revenue, Sanlam has also shown impressive financial performance. In 2022, Sanlam reported an 8% growth in its key earnings metric, net results from financial services. This growth, coupled with a robust return on group equity value (RoGEV) of 15.1%, underscores Sanlam’s strong financial health.
Market Influence and Future Prospects
Both companies have a significant influence on the South African and broader African financial markets. Old Mutual’s extensive product offerings and strong market presence make it a formidable competitor. Meanwhile, Sanlam’s strategic alliances and consistent financial performance position it well for future growth.
Conclusion
In conclusion, while Old Mutual currently holds the top spot in terms of revenue, Sanlam is not far behind and continues to strengthen its market position through strategic partnerships and solid financial performance. Both companies are key players in the financial services sector, each with its unique strengths and growth strategies