Africa News - Egypt: AXA completes purchase of Commercial International Life
Source: Middle East Insurance Review | Jan 2016
AXA has completed the acquisition of 100% of Egypt-based Commercial International Life Insurance Company (CIL) for a cash consideration of EGP763 million (US$97.3 million), the French insurer announced in a statement.
In conjunction with the acquisition, CIL has entered into a 10-year exclusive life and savings distribution agreement with Commercial International Bank (CIB), focusing in particular on unit-linked and protection and health insurance. CIB is the largest private bank in Egypt.
The acquisition of CIL was announced last July. CIL has a 15% market share in Egypt and offers both unit-linked and protection products. It recorded a 23% annual premium growth from 2012 to 2014.
The acquisition will allow AXA to accelerate its development in Egypt, following the grant of its preliminary non-life insurance licence in March 2015. AXA plans to offer life, health and property & casualty insurance covers to individuals, SMEs and corporate clients. More generally, the acquisition will allow AXA to strengthen its footprint in the Middle East and Africa. It will also support the shift in business mix towards more unit-linked and protection and health products, AXA said.
Prior to AXA’s purchase, CIL was owned 55% by Legal & General of the UK, and 45% by CIB.
EGP1 = US$0.12