Ger­many’s Al­lianz Takes over Nige­rian In­surer

THISDAY - - BUSINESS/ MONEYGUIDE -

Ger­many’s Al­lianz plans to pay $35 mil­lion for 98 per cent stake in Nige­rian in­surer, En­sure In­sur­ance, in a push for growth in Africa, where many peo­ple are unin­sured.

For­eign in­sur­ers are banking on grow­ing pre­mi­ums as the con­ti­nent de­vel­ops its in­fra­struc­ture and a con­sumer class de­mands pro­tec­tion from risk. A Reuters re­port dis­closed that Al­lianz said that it would ac­quire the stake from UK-based hold­ing com­pany Greenoaks Global Hold­ings.

En­sure In­sur­ance of­fers life and non-life cover to busi­nesses and re­tail clients and gen­er­ated 11 mil­lion eu­ros ($13 mil­lion) in gross pre­mi­ums last year.

The Al­lianz group has op­er­a­tions in 16 African coun- tries and views the En­sure ac­qui­si­tion as an op­por­tu­nity to tap into Nige­ria’s strong de­mo­graph­ics and economy.

“The trans­ac­tion gives Al­lianz ac­cess to the fifth­largest in­sur­ance mar­ket in Africa and is in line with our strat­egy to cap­ture long-term growth op­por­tu­ni­ties on the con­ti­nent,” said Al­lianz Africa spokes­woman Bet­tina Sat­tler.

“It is also a mar­ket with sig­nif­i­cant en­try bar­ri­ers, which is another rea­son why this ac­qui­si­tion is a great op­por­tu­nity for us. En­ter­ing Nige­ria with a team that knows the mar­ket was es­sen­tial for us.”

Al­lianz ex­pects the ac­qui­si­tion to close this year and said it in­tends to re­tain En­sure’s man­age­ment team.

The Ger­man in­surer plans to fo­cus on prop­erty and ca­su­alty in­sur­ance, par­tic­u­larly un­der­writ­ing in­dus­trial and spe­cial­ity risk in the en­ergy sec­tor as well a large com­plex risks such as in­fra­struc­ture.

“In the past two years, we have been quite vis­i­ble in Nige­ria, shar­ing our risk-man­age­ment ex­per­tise in power, oil and gas, as well as cy­ber in­sur­ance,” Sat­tler said.

“Now that we have a com­pany lo­cally ... the re­tail sec­tor is another growth sec­tor for us.”

Al­lianz fol­lows Bri­tish in­surer Pru­den­tial which last month bought a ma­jor­ity stake in Nige­ria’s Zenith Life to gain ac­cess to the African coun­try’s fast-grow­ing in­sur­ance mar­ket.

Adeo­sun

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