Under the agreement, EFG Hermes Finance and GB Capital will each own 37.5% of the company
EFG Finance Holding, a subsidiary of Egyptian investment bank EFG Hermes and GB Capital, a subsidiary of GB Auto, have signed an agreement to acquire a 75% stake in Tokio Marine Egypt Family Takaful for E£84.75m ($5.28m).
Established in 2008, Tokio Marine Egypt Family Takaful offers individual and corporate clients with a wide range of life insurance products. Japan-based Tokio Marine Group owns Tokio Marine Egypt Family Takaful.
Under the terms of the agreement, EFG Hermes Finance and GB Capital will each own 37.5% of the company.
GB Auto chairman and CEO Raouf Ghabbour said: “We are honored to partner with EFG Hermes and Tokio Marine Group and are confident that our new relationship represents the natural progression of our already established, expansive and fast-growing NBFI portfolio of offerings in the leasing, consumer finance, factoring, micro finance, mortgage finance, securitization and fleet-leasing arenas.”
According to the agreement, EFG Hermes Finance and GB Auto will jointly work with Tokio Marine Group to expand and develop Tokio Marine Egypt Family Takaful’s life insurance offering.
EFG Hermes and GB Auto will add innovative products to their portfolio
The partnership will add innovative products to set up a comprehensive suite of life and medical insurance solutions to owners of various asset classes including automotive owners and home-owners.
EFG Hermes Holding Group CEO Karim Awad said: “Thanks to an improving economic outlook, capital regulations focused on insurance penetration, and wider financial inclusion, Egypt’s insurance industry is poised for substantial growth in line with the kind of growth anticipated for other emerging markets.
“As such, this partnership not only comes at the perfect time, but falls perfectly in line with our strategy to continue expanding our NBFI offering.
“Our NBFI footprint today encompasses leasing, microfinance, fintech-enabled consumer finance, mortgage finance, factoring and securitization.
“We can think of no better partner with whom to move forward on this than GB Capital and Tokio Marine Group.”
EFG Hermes Finance, GB Auto, and TMG Group have created a mortgage finance joint venture named Bedaya in April, which will serve a large and growing population of homebuyers in Egypt.