[Nigeria] Companies Partner to Provide Insurance to Locals
The Africa Internet Group (AIG) and AXA, a global leader in insurance and asset management, have announced a partnership that will involve the latter as the exclusive provider of insurance products and services.
These services will be provided through Jumia and other AIG online and mobile platforms in Africa.
Announced in Lagos, the partnership would see AXA become a shareholder of AIG, along with MTN, Rocket Internet and Millicom.
AXA will invest €75 million and own approximately 8 percent of the capital of AIG. Completion of the transaction is subject to customary closing conditions, including the closing of the previous investment round, and is expected to take place in the first quarter of 2016.
The transaction follows AXA viewing Africa as a fast developing market for financial services and insurance products, benefitting from strong fundamentals such as low penetration rates, rise in middle class, urbanisation as well as the youth of its population.
"Internet is creating unparalleled opportunities for consumers and businesses in Africa to connect and do business in a new way. We continue to be very excited about the growth prospects of Jumia and this new partnership will enable us to capture them," said Sacha Poignonnec and Jeremy Hodara, founders and co-CEOs of Jumia and AIG.
Jumia is Africa's leading online shopping destination with a presence in 11 countries.
"We expect Africa's e-commerce and online businesses to develop rapidly as a result of the strong growth of the middle class coupled with the increasing mobile phone and internet penetration," the executives added.
Denis Duverne, Deputy CEO of AXA, said the transaction confirmed AXA's long-term commitment towards the African markets and represented another step in their development on the continent.
"Africa is home to some of the most dynamic and promising insurance markets in the world and our partnership with Africa Internet Group will enable us to accelerate materially our development by having access to their rich customer base and to their state-of-the-art e-commerce technology," Duverne said.
