AXA to acquire 7% of Africa Re, the leading reinsurer in Africa
AXA announced today that it has entered into an agreement to acquire a 7.15% stake in African Reinsurance Corporation ("Africa Re"), the leading reinsurance company in Africa. Under the terms of the agreement, the total cash consideration payable atAfrica Re is the #1 reinsurer in Africa, operating across the continent. It was founded in 1976 by the member states of the African Union and the African Development Bank (ADB). Africa Re’s current shareholding comprises 41 member states, the ADB and more than 100 African insurance and reinsurance companies, together holding a 75% stake in the company, as well as other development finance institutions and strategic partners. Africa Re is a growing and profitable company, with gross written premiums of Euro 505 million and net income of Euro 64 million in 20133. Africa Re has strong reinsurance market shares across the continent4, notably in countries identified as key priorities for AXA, such as Nigeria and Egypt.
This transaction is another step in our African strategy and follows on from our recent acquisition of Mansard in Nigeria and our partnership with the World Bank Group’s International Finance Corporation. It allows us to increase our pan-African exposure and to benefit from the knowledge of an experienced and successful partner
This transaction would allow AXA to increase its exposure to the fast growing reinsurance and insurance markets in Africa, in line with its Ambition AXA strategy, by participating in the successful and profitable development of Africa Re. Moreover, AXA expects to benefit from the extensive knowledge of the local markets and the expertise of Africa Re’s management team.
“This transaction is another step in our African strategy and follows on from our recent acquisition of Mansard in Nigeria and our partnership with the World Bank Group’s International Finance Corporation. It allows us to increase our pan-African exposure and to benefit from the knowledge of an experienced and successful partner”, said Denis Duverne, Deputy Chief Executive Officer of AXA.
“At the same time, this new step confirms our commitment to the African continent, where we believe insurance has a crucial role to play in promoting economic development, due to its contribution to improving risk management, protection and prevention. Thus, we are delighted to bring our strong technical know-how and expertise to support Africa Re’s ambitions.”
ABOUT THE AXA GROUP
The AXA Group is a worldwide leader in insurance and asset management, with 157,000 employees serving 102 million clients in 56 countries. In 2013, IFRS revenues amounted to Euro 91.2 billion and IFRS underlying earnings to Euro 4.7 billion. AXA had Euro 1,113 billion in assets under management as of December 31, 2013.
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