Allianz Group has completed the acquisition of a 99.03% stake in Nigerian insurer Ensure Insurance from its main shareholder Greenoaks Global Holdings (GGH) for an undisclosed price.
The Germany-based insurance company had signed an agreement with GGH in August 2017 in a move to get full access to the Nigerian insurance market.
Allianz said that the acquisition is a significant milestone for its long-term growth strategy in Africa.
The German firm noted that Nigeria is a high-potential market in Africa having a better regulatory environment and promising demographics.
Allianz Africa Rregional CEO Coenraad Vrolijk said: “We are pleased to enter this fast-growing market through the acquisition of a solid financial player with strong local expertise.
“This new step of development will allow us to leverage the strength of the Allianz Group and the expertise of the Nigerian team to provide high quality products and services to Nigerian customers in both personal and commercial lines.”
Ensure Insurance, which will now operate in Nigeria as Ensure – a company of Allianz, provides both life and non-life insurance services. The insurance firm, which aspires to become an insurer of choice in the Nigerian market, earned €18.2m in gross premiums written in 2017.
Ensure is expected to benefit from the technical underwriting expertise along with the global footprint and financial backing of the Allianz Group.
Ensure Insurance’s Owolabi Salami said: “The consummation of this acquisition will be highly beneficial to our business and improve our service platform to our valued clients.
“We are excited to harness the depth of technical competence that Allianz has acquired over years of experience garnered through serving clients in various sectors. We are confident that this will position us for leadership in the local operating environment.”
In Africa, Allianz has presence in at least 17 countries and accompanies clients in 39 countries.
Recently, Allianz had signed a deal to buy a stake of 8% in African reinsurer Africa Re for $81m, in a move to increase its footprint in the fast-growing African markets.