French insurer announces major local acquisitionfrom OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – AXA, the French insurance firm, has confirmed an agreement to acquire a 7,15 percent stake in African Reinsurance Corporation (Africa Re), the leading reinsurance company in Africa.
Africa Re has strong reinsurance market shares across the continent, notably in countries identified as key priorities for AXA, such as Nigeria and Egypt.
Officials said this transaction would allow AXA to increase its exposure to the fast growing reinsurance and insurance markets in Africa, in line with its Ambition AXA strategy, by participating in the successful and profitable development of Africa Re.
Moreover, AXA expects to benefit from the extensive knowledge of the local markets and the expertise of Africa Re’s management team.
“This transaction is another step in our African strategy and follows on from our recent acquisition of Mansard in Nigeria and our partnership with the World Bank Group’s International Finance Corporation.
“It allows us to increase our pan-African exposure and to benefit from the knowledge of an experienced and successful partner”, said Denis Duverne, Deputy Chief Executive Officer of AXA.
“At the same time, this new step confirms our commitment to the African continent, where we believe insurance has a crucial role to play in promoting economic development, due to its contribution to improving risk management, protection and prevention. Thus, we are delighted to bring our strong technical know-how and expertise to support Africa Re’s ambitions.”
Member states of the African Union and the African Development Bank (AfDB) founded Africa Re in 1976.
Africa Re’s current shareholding comprises 41 member states, the AfDB and more than 100 African insurance and reinsurance companies, together holding a 75 percent stake in the company, as well as other development finance institutions and strategic partners.
– CAJ News
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