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AXA reincorporates Nigerian insurance acquisition

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In from Success Allantee…

AXA, one of the world’s largest insurance companies, has reincorporated the Nigerian insurance company –Mansard Insurance Plc, which it acquired late last year, firmly establishing the global insurance company as a major operator in the Nigerian insurance industry.

After obtaining a new certificate of incorporation from the Corporate Affairs Commission (CAC), AXA Wednesday documented the change of name from Mansard Insurance Plc to AXA Mansard Insurance at the Nigerian Stock Exchange (NSE), where the insurance company is quoted.

A source at the NSE said on the basis of request from AXA, the name of Mansard Insurance was changed to AXA Mansard Insurance both at the NSE and the Central Securities Clearing System (CSCS) Plc, on July 7, 2015. The CSCS is the clearing and settlement depository for the Nigerian capital market.

AXA had bought 77 per cent majority equity stake in Mansard Insurance Plc, in a major market-entry push that promises to profoundly impact the Nigerian insurance industry. AXA already has a substantial presence in Africa including Cameroon, Gabon, Ivory Coast, Morocco, Senegal and Algeria.

AXA took over the 77 per cent equity stake held by Assur Africa Holding Limited (AAH), the core investor that had purchased the former Guaranty Trust Bank insurance subsidiary. GTBank had sold its insurance subsidiary, Guaranty Trust Assurance Plc, in compliance with regulatory framework of the Central Bank of Nigeria (CBN).

AXA had entered into an agreement to acquire 100 per cent of Assur Africa Holdings, which then held the 77 per cent equity stake in Mansard. AAH is made up of Development Partners International (UK), Africinvest Inc (Tunisia), Netherlands Development Finance Company (Holland), German Investment Corporation (Germany), French Development Finance Company (France) and ASPV Limited.

AXA had stated that the acquisition of a majority stake in Mansard Insurance would further strengthen its presence in Africa.

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Deputy chief executive officer, AXA, Denis Duverne, said the 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 noted that Mansard is the fourth largest insurance provider in Nigeria with operations in both property and casualty and life and savings, pointing out that Mansard is well established in commercial lines, which represents nearly two thirds of its revenues, and has been developing successfully its retail business over the past three years.

AXA will be looking to explore growth potential in the Nigerian insurance market, the third largest in Africa.

It noted that the Nigerian insurance market is highly underpenetrated with a premium to GDP ratio of 0.4 per cent, although the market has enjoyed significant growth over the past three years, at an average of 18 per cent per annum.

“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,” AXA stated.

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  1. Don Lucassi

    July 9, 2015 at 10:33 am

    hmmmm I always thought this was a GT company…didnt know it was sold since. Good acquistion

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