By Nse Anthony-Uko
(Sundiata Finance) – Allianz Group has acquired 98 per cent stake in Ensure Insurance Plc, thus, dethroning the current core shareholder, Greenoaks Global Holdings Limited GGH).
The Group is paying $35 million for 98 per cent stake in Nigerian insurer in a push for growth in Africa, where many people are uninsured or underinsured.
Ensure Insurance Plc is a Nigerian underwriter that offers life and non-life insurance services and generated about N40 billion gross premiums written in 2016.
Allianz Group views Africa as one of the important future growth markets and is now present in 17 countries across the region. Nigeria, a fast growing country with a population of more than 180 million citizens, is the country with the largest GDP on the continent.
“Nigeria is one of the most dynamic economies in Africa. The acquisition of Ensure Insurance Plc. gives us full access to this key insurance market in Africa and marks a major milestone for Allianz’s long-term growth strategy on the continent. This new step of development will allow us to offer the best products and services to Nigerian customers in both personal and commercial lines. In addition, as we grow our excellent African teams, we are laying particular emphasis on hiring and developing local talent,” said Coenraad Vrolijk, Regional CEO Africa of Allianz SE.
Pending regulatory approvals, the transaction is expected to close end of 2017 when Ensure Insurance Plc. shall become a member of the Allianz Group.
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.