German insurer Allianz announced in a statement published on June 17 it has bought Moroccan subsidiary of Zurich Insurance for €244 million.

Subject to necessary regulatory approvals, the deal should be sealed before the end of 2016, the same source reports.

Zurich Assurances Maroc is 7th in Morocco’s Casualty & Accidents insurance market. It has a pool of 600,000 customers. In 2015, the company had €114 million of gross premiums.

The firm also has a license that allows it to sell life and health insurances.

In its statement, Allianz indicated that it considers Africa to be a “significant market for its expansion”, but refused to reveal if any deal similar to that with Zurich Insurance was projected in the continent.

With an average annual growth of 6-7%, Morocco is Africa’s second largest insurance market, according to Allianz.

Zurich Insurance initiated in February 2016 a procedure to sell its casualty branches in South Africa and Morocco in the framework of strategic revision of the assets of its unprofitable insurance business.