France-based AXA has signed an agreement to acquire 100% stake in Assur Africa Holdings (AAH), for around EUR198m.
AAH owns 77% interest in the Nigeria-based composite insurance company Mansard Insurance, which carries out operations in both property & casualty and Life & Savings sectors.
AXA deputy CEO Denis Duverne said: "This acquisition is a unique opportunity for AXA to enter the largest African economy with leading positions in all business lines and to get exposure to the fast-growing Nigerian retail insurance market.
"AXA will benefit locally from the knowledge of an experienced and successful management team and from a profitable platform."
The deal will allow AXA to enter the Nigerian market, while Mansard will be benefitted through the former’s extended distribution knowledge and product skills to accelerate its development and leverage its competitive advantages.
Established in 1989, Mansard is a composite insurer in the Nigerian market with two thirds of its revenue from commercial lines and has been developing successfully its retail business.
The company has reported GWP of NGN13.6bbn (EUR64.3m) in 2013, while it achieved a GWP growth of 22% per annum on average from 2010 to 2013.
Mansard Group managing director Tosin Runsewe said: "We are delighted to join the AXA Group, a global leader in Life & Savings, Property & Casualty and Asset Management.
"It is indeed a befitting home for the Mansard Group given our leading position in the same business lines within Nigeria and our unflinching drive to consistently create exceptional value for all our stakeholders."
The transaction is expected to be completed by the end of this year.
In Africa, AXA carries out operations in Cameroon, Gabon, Ivory Coast, Morocco, and Senegal, as well as greenfield operations in Algeria.
Image: Building of AXA in Utrecht. Photo: courtesy of neushorn.