Germany-based insurance company Allianz Group has agreed to acquire a 8% minority stake in African Reinsurance (Africa Re).
Image: Sitting (From left to right) Corneille Karekezi; Africa Re Board chairman Hassan Boubrik; Allianz CEO Oliver Bäte and Niran Peiris. Photo: Courtesy of Allianz.
As per the deal terms, the total cash consideration payable at completion would amount to $81m.
The deal makes Allianz one of the largest shareholders of Africa Re.
The investment will help Allianz establish a foothold in a fast growing African markets.
Africa Re was established in 1976 by the member states of the African Union and African Development Bank (ADB). The company has operations across the continent.
Africa Re group managing director and CEO Corneille Karekezi said: “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.”
As part of the co-operation, the two companies aim to support each other in the areas of reinsurance, business development, sharing of best practices, risk management tools, along with training and technical support, especially in emerging areas and underserved markets.
Africa Re claims to have an in-depth business knowledge of the African markets and has a network that spans regions and linguistic communities, that allow for an better proximity to its clients.
Allianz Management Board Member and head of global insurance lines & Anglo markets, reinsurance, Middle East, Africa Niran Peiris 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.
“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.”
Recently, Allianz sold part of its life insurance portfolio in Taiwan to China Life Insurance. It also stated that it will continue to operate its business in the country.