AXA announced today it will enter into a ten-year Life & Savings exclusive bancassurance agreement with Commercial International Bank ("CIB"), the number one private-sector bank in Egypt.
As part of the transaction, AXA will acquire 100% of Commercial International Life Insurance Company ("CIL"), a leading Egyptian Life insurance player, jointly owned by Legal & General (55%) and CIB (45%).
With its ca. 628,000 retail and 60,000 corporate customers, CIB is the number one private-sector bank in Egypt, relying on an extensive network composed of 166 branches and 10,000 points of sale. It has built a highly reputable brand and a robust market position with a clear ambition to accelerate its presence in the retail banking segment. Thus, CIB represents a unique partner for AXA to benefit from the high growth prospects of the Egyptian market.
CIL is the number three Life & Savings insurance player in Egypt with a 15% market share and offers both Unit-Linked and Protection products. It is a fast-growing company with 23% annual premium growth from 2012 to 2014, and a strong business performance over the first six months of the fiscal year 2015.
Thanks to the excellent positioning of CIB in Egypt, this transaction will allow AXA to accelerate its development in Egypt, following the grant of its preliminary non-life insurance license in March 2015. Since then, it has built a team of highly experienced professionals and intends to start its operations in September. AXA plans to offer Life, Health and Property & Casualty insurance covers to individuals, SMEs and corporate clients and leverage the strength of its global presence.
More generally, this transaction will also allow AXA to pursue the strengthening of its footprint in the Middle East and Africa. It will also support the shift in business mix towards more Unit-Linked and Protection & Health products, in line with the Ambition AXA strategy.