Germany’s Allianz to buy 98 pct stake in Nigerian insurer

Germany’s Allianz plans to pay $35 million for 98 percent stake in Nigerian insurer, Ensure Insurance in a push for growth in Africa, where many people are uninsured.

Foreign insurers are banking on growing premiums as the continent develops its infrastructure and a consumer class demands protection from risk.

Allianz said that it would acquire the stake from UK-based holding company Greenoaks Global Holdings. Ensure Insurance offers life and non-life cover to businesses and retail clients and generated 11 million euros ($13 million) in gross premiums last year.

The Allianz group has operations in 16 African countries and views the Ensure acquisition as an opportunity to tap into Nigeria’s strong demographics and economy.

“The transaction gives Allianz access to the fifth-largest insurance market in Africa and is in line with our strategy to capture long-term growth opportunities on the continent,” said Allianz Africa spokeswoman Bettina Sattler.

“It is also a market with significant entry barriers, which is another reason why this acquisition is a great opportunity for us. Entering Nigeria with a team that knows the market was essential for us.”

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