Insurer Allianz Group has signed an agreement to acquire 8% stake in Africa’s reinsurer Africa Re for $81 million.
Africa Re was founded in 1976 by the member states of the African Union and African Development Bank (ADB) and it has business in more than 60 countries with gross written premiums of $726.6 million and net income of $85.3 million in 2017.
The Lagos-headquartered company is dedicated to the African continent and open to selected markets in Asia and the Middle East. It also has a strong share of the reinsurance market across the African continent, notably in countries identified as key priorities for Allianz, such as Kenya and Nigeria.
The investment is another step by Allianz to increase its presence in fast-growing African markets, following the acquisition of 98% of Nigerian insurer Ensure Insurance Plc in 2017.
Allianz Group views Africa as one of the important future growth markets and is now present in 17 countries across the region.
“This investment in Africa Re is a major milestone for Allianz’s long-term growth strategy in Africa, and through cooperation and innovation in various areas, Allianz and Africa Re aim to jointly support insurance penetration in Africa and the economic development of the continent,” Niran Peiris, Member of the Board of Management of Allianz SE, responsible for Global Insurance Lines & Anglo Markets, Reinsurance, Middle East, Africa, said in a statement.
The partnership between two companies will enable co-operation in areas of reinsurance, business development, sharing of best practices, risk management tools, as well as training and technical support, especially in emerging areas and underserved markets,” Corneille Karekezi, Africa Re’s Group Managing Director and Chief Executive Officer said.
Allianz Group has more than 88 million retail and corporate customers and manages over $759.3 billion on behalf of its insurance customers. On the other side, Allianz’s asset managers Global Investors and PIMCO manage an additional $1.6 trillion of third-party assets.
In 2017, the group’s total revenue reached $147 billion with an operating profit of $12.8 billion.