By Dipo Olowookere
Top German firm, Allianz Group, has signed a deal to allow it acquire 8 percent stake in Africa’s largest reinsurer, Africa Reinsurance fondly called Africa Re.
A statement issued by Allianz disclosed that under the terms of the agreement, the total cash consideration payable at closing would amount to $81 million.
“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, a member of the board of management of Allianz SE, responsible for Global Insurance Lines & Anglo Markets, Reinsurance, Middle East, Africa, was quoted as saying in the statement.
With this deal, Allianz is now one of Africa Re’s largest shareholders, helping the German company spread its presence on the continent.
“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,” Niran Peiris added.
Both sides plan to cooperate in areas including reinsurance, business development, sharing of best practices, risk management tools and training/technical support in emerging areas and underserved markets.
Also commenting on the development, Corneille Karekezi, Africa Re’s Group Managing Director and Chief Executive Officer, stated that, “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.”
The partnership, built on mutual business support, will enable co-operation in areas of reinsurance, business development, sharing of best practices, risk management tools, as well as training and technical support, especially in emerging areas and underserved markets.
Africa Re, after 42 years operational experience on the continent, 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.
