AXA announced today it has entered into an agreement to acquire 100% of Assur Africa Holdings which holds a 77% stake in the composite insurance company Mansard Insurance plc ("Mansard").
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. AXA will benefit locally from the knowledge of an experienced and successful management team and from a profitable platform. Thus, this 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.
Nigeria is the largest economy in Africa, with a nominal GDP of Euro 378 billion in 2013, and the most populous country in Africa, with a population of 174 million inhabitants. Founded in 1989, Mansard is the #4 insurance provider in Nigeria with operations in both Property & Casualty and Life & Savings. The company is well established in commercial lines, which represents nearly two thirds of its revenues, and has been developing successfully its retail business, achieving a growth of ca. 40% per annum on average over the past three years.
AXA´s presence in Africa consists today of operations in:
- Cameroon (#4 in P&C with 10% market share and revenues of Euro19 million)
- Gabon (#5 in P&C with 14% market share and revenues of Euro23 million)
- Ivory Coast (#5 in P&C with 7% market share and revenues of Euro16 million)
- Morocco (#3 in P&C with 16% market share and revenues of Euro250 million; #5 in Life with 10% market share and revenues of Euro71 million)
- Senegal (#1 in P&C with 17% market share and revenues of Euro18 million)
- As well as greenfield operations in Algeria (ca. 1% market share In P&C with revenues of Euro11 million and 9% market share in Life with revenues of Euro7 million)
Nigerian Insurance Market
The Nigerian insurance market is the third largest in Africa with NGN 313 billion (Euro1.5 billion) GWP in 2013. The market is commercial lines oriented (70% of the market), and made up of 75% Property & Casualty and 25% Life premiums. Main P&C lines include Motor, General Accident, Oil & Energy and Fire.
The top ten players represent ca. 80% of the market in Life and 50% in P&C. Distribution is dominated by agents for retail and brokers for commercial lines, while alternative channels, such as bancassurance or mobile insurance, are growing.
The Nigerian insurance market is highly underpenetrated with a premium to GDP ratio of 0.4%. The market has enjoyed significant growth over the past three years, at 18% per annum on average. There is significant upside given the low penetration of insurance and the strong prospects for the Nigerian economy, notably with the developing middle class. Market growth has also been boosted by government reforms such as mandatory Motor and Group Life insurance.