Allianz Group has entered into an agreement to acquire an 8% stake in African Reinsurance Corporation (Africa Re) for a total cash consideration of USD 81 million.
The transaction will make Allianz one of the largest shareholders in Africa Re, and will enable both companies to jointly promote insurance penetration in Africa and support the economic development of the continent.
Niran Peiris, Member of the Board of Management at Allianz SE, with responsibility for Global Insurance Lines & Anglo Markets, Reinsurance, Middle East, Africa, commented: “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.”
Following the acquisition, Allianz and Africa Re plan to co-operate in areas of reinsurance, business development, best practices, risk management tools, and training and technical support, particularly with regard to emerging areas and underserved markets.
Africa Re possesses expert knowledge of the African re/insurance markets, having operated on the continent for 42 years, and has access to an expansive network across both regions and linguistic communities.
Corneille Karekezi, Africa Re’s Group Managing Director and Chief Executive Officer (CEO), 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.”
Peiris added: “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.”