Global insurer Allianz Group has signed an agreement to acquire a stake of 8% in Africa's leading reinsurer Africa Re. The acquisition makes Allianz one of the largest shareholders of the reinsurer.
Under the terms of the agreement, the total cash consideration payable at closing would amount to $81 million.
In a statement yesterday,Mr Niran Peiris, member of the board of management of Allianz SE, responsible for Global Insurance Lines & Anglo Markets, Reinsurance, Middle East, Africa, said, “Having identified Africa as one of the future growth markets, we continue to invest step-by-step in the continent. This investment in Africa Re is a major milestone for Allianz’s long-term growth strategy in Africa.”
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.
“This partnership with Allianz Group, a reliable and strong partner with a global network, particularly in agriculture and the emerging field of cyber insurance, will definitely strengthen Africa Re’s capacity to offer its clients services of higher quality,” Mr Corneille Karekezi, Africa Re’s group managing director and CEO, said.
The partnership, built on mutual business support, will enable cooperation 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.
Lagos-headquartered Africa Re, after 42 years operational experience on the continent, has in-depth business knowledge of the African markets and an expansive network across both regions and linguistic communities, allowing it unmatched proximity to its clients.
“This partnership with Africa Re is a strategically complementary one for both companies, as well as being beneficial to our clients on the continent, who can rely on the support, experience, and cooperation of both Allianz and Africa Re,” Mr Peiris said.
Africa Re, founded in 1976 by the member states of the African Union and African Development Bank (ADB), has operations across the continent. It has a diversified set of shareholders, including 44 African states (35%), over 110 African insurance and reinsurance companies (34%), the ADB (8%) and non-African investors (23%). The reinsurer conducts business in more than 60 countries and territories. It has a physical presence in eight locations including Lagos (Nigeria), Casablanca (Morocco), Nairobi (Kenya), Abidjan (Ivory Coast), Johannesburg (South Africa), Ebene (Mauritius), Cairo (Egypt) and Addis Ababa (Ethiopia). Africa Re is rated “A” (Excellent) by AM Best and “A-” (Strong) by Standards & Poor’s both with a stable outlook.