Allianz Group acquires 8% stake in Africa Re for $81 million

One of the world’s leading insurers, Allianz Group recently announced the signing of an $81 million agreement to acquire an 8 percent stake in Africa’s leading reinsurer Africa Re. This transaction makes Allianz Group one of the largest shareholders in Africa Re.

“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,” Niran Peiris, Member of the Board of Management of Allianz SE, responsible for Global Insurance Lines & Anglo Markets, Reinsurance, Middle East, Africa, said of the transaction.

Africa Re brings its 42 years operational experience on the continent on board t, 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.

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 is a strategically complementary one for both companies, as well as being beneficial to their clients. It will also see them take advantage of Africa Re’s 42 years operational experience on the continent. Africa Re 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.

According to Corneille Karekezi, Africa Re’s Group Managing Director and Chief Executive Officer, this partnership with Allianz Group, is a reliable and strong partner with a global network, particularly in agriculture and the emerging field of cyber insurance which will definitely strengthen Africa Re’s capacity to offer its clients services of higher quality.

This acquisition also comes six months after Allianz acquired 98 percent stake in Nigerian insurer, Ensure Insurance Plc.  

What you should know about Allianz Group

  • The Allianz Group is one of the world’s leading insurers and asset managers with more than 86 million retail and corporate customers.
  • Allianz is one of the world’s largest investors, managing over 650 billion euros on behalf of its insurance customers while our asset managers Allianz Global Investors and PIMCO manage an additional 1.4 trillion euros of third-party assets.
  • It holds a leading position in the Dow Jones Sustainability Index.
  • The insurer is currently present in 17 African countries which include: Benin, Burkina Faso, Cameroon, Central African Republic, Egypt, Ghana, Ivory Coast, Kenya, Madagascar, Mali, Mauritius, Morocco, Nigeria, Republic of the Congo, Senegal, South Africa, Togo
  • It’s 1,500 employees achieved regional revenues of 600 million euros in 2016. Allianz also provides micro-insurance for 500,000 low-income families and individuals in Africa.

What you didn’t know about Africa Re

  • Africa Re, was founded in 1976 by the member states of the African Union and African Development Bank (ADB).
  • It has operations across the continent and has a diversified set of shareholders, including 44 African states (35 percent), over 110 African insurance and reinsurance companies (34 percent), the ADB (8 percent) and non-African investors (23 percent).  
  • It has 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 stable outlooks.
  • Africa Re is a growing and profitable company with gross written premiums of 622 million euros and net income of 73 million euros in 2017.