German insurer, Allianz Group says it plans to acquire 98% stake in Nigerian insurer, Ensure Insurance, for $35 million. This is in line with plans to expand its footprint in Africa where many people are uninsured.

According to the company, the stake would be acquired from UK-based, Greenoaks Global Holdings, a shareholder in Ensure.

Subject to regulatory approvals, the transaction is expected to be finalized by the end of this year. It also intends to retain Ensure’s management team.

Allianz which has operations in 16 African countries sees the 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. 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,” Bettina Sattler, Allianz Africa spokeswoman said.

She added that the group intends to focus on property and casualty insurance, mostly underwriting industrial and speciality risk in the energy sector as well as large complex risks like infrastructure. “In the past two years, we have been quite visible in Nigeria, sharing our risk-management expertise in power, oil and gas, as well as cyber insurance. Now that we have a company locally, the retail sector is another growth sector for us.”

Ensure is one of the most innovative and fastest growing insurance companies in Nigeria. The insurer which provides life and non-life insurance to businesses and retail clients, generated $13 million in gross premiums, last year.

Anita Fatunji