(Ecofin Agency) - Axa Mansard, the Nigerian branch of French insurer Axa, is on the verge of finalizing the sell-off of its pension fund administrator. The company sold the 60% stake (representing nearly 2.1 billion shares) it holds in Axa Mansard Pension Ltd to Eustacia Limited, a member of investment group Verod.
“This transaction marks a new step in AXA ́s broader strategy to focus on and grow our Life, Property & Casualty (P&C) and Health businesses across all its territories. The AXA Group sees great potential in the Nigerian insurance market and believes AXA Mansard is ideally placed to capture these opportunities, thanks to its market leadership positions in Health Insurance, Property & Casualty and Life Insurance,” said Kunle Ahmed, MD of Axa Mansard.
Before Axa, AIICO Insurance had also divested stake in its pension fund management body to focus on risk coverage and management activities. In Nigeria, the pension fund administration sector weights N10 trillion but is largely dominated by specialized companies that have been in the game for decades and have saved significant market shares, making it hard for small players to find a place.
On the other hand, the risk coverage sector is blooming for Nigerian insurers. Despite the current pandemic context, it is showing strong resilience. However, enjoying opportunities in that sector requires sufficient equity capital.
Axa Mansard, which is one of the major insurers in Africa's leading economy by GDP, confirms its ambition by quitting a segment that is not strategic for the company.