Axa Acquires Majority Stake in Nigeria-Based Mansard Insurance for $243 Million
December 10, 2014 by Fran Matso Lysiak
PARIS – France-based Axa S.A. said it has completed the acquisition of 100% of Assur Africa Holdings, which holds a 77% stake in the composite insurance company Mansard Insurance plc in Nigeria, for €198 million (US$243 million).
When it announced the deal in November, Axa said the acquisition would make it a No. 4 insurance company in Nigeria.
Mansard has operations in property/casualty and life and savings. The company also is well established in commercial lines, which represents nearly two-thirds of its revenues.
With the acquisition, Axa would have the opportunity to further boost its presence in Africa and enter the fast-growing Nigerian insurance market. This market is the third largest in Africa, with € 1.5 billion in gross written premiums in 2013. It is commercial lines oriented, and made up of 75% property/casualty and 25% life premiums. Main property/casualty lines include motor, general accident, oil and energy and fire.
“This acquisition is a unique opportunity for Axa to enter the largest African economy with leading positions in all business lines and to get exposure to the fast-growing Nigerian retail insurance market,” said Denis Duverne, deputy chief executive officer of Axa, in a November statement.
Nigeria is the largest economy in Africa, and the most populous country in Africa, with a population of 174 million people.
Mansard, headquartered in Lagos, Nigeria, is listed on the Nigerian Stock Exchange. In 2013, the company recorded gross written premiums of €64.3 million. Net income in 2013 was € 9.9 million, a 31% increase over 2012.
The transaction “represents a further step in our acceleration strategy, which is at the heart of our Ambition Axa plan, and is in line with our belief that insurance is instrumental to foster economic development, by providing communities with protection and risk management expertise,” Duverne said.
Going forward, the acquired operations will be included within its Mediterranean & Latin American region.
Pointing to what it described as the success of its continuing strategic initiative, Axa SA in October reported a 2% increase in revenues to €69.6 billion in the first nine months of 2014, up from €69.5 billion for the same period last year.
Rated subsidiaries of Axa S.A. have a current Best’s Financial Strength Rating of A+ (Superior), A (Excellent) or B++ (Good).
(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)
