Allianz picks Morocco as growth hub for African expansion
Morocco is a stable country politically and economically with a growing middle class and could serve as a hub for Allianz to pursue further growth in Africa, Thomas Atkins, head of channels and financial communications at Allianz, told Intelligent Insurer.
Germany’s Allianz said on June 17 that it had signed a binding agreement to acquire Zurich Assurances Maroc, a subsidiary of Zurich Insurance Company in Morocco, for €244 million.
Morocco is the second largest insurance market in Africa after South Africa with annual premium growth of between 6 percent and 7 percent, according to Allianz.
But the insurance penetration rate is still low, and Allianz wants to activate the dormant life insurance license that is included in the acquisition of Zurich Assurances Maroc, which generated €114 million in gross premiums written in 2015 by focusing on the property/casualty market.
Allianz is acquiring “a sound, profitable business that we want to grow organically,” according to the spokesperson, aiming to become a one-stop-shop offering a range of products under one brand in the country. The German insurer will therefore invest into its Moroccan business and sees growth potential particularly in individual health insurance.
In addition, Allianz expects the acquisition to produce topline synergies with its existing businesses in Morocco, which include Euler Hermes ACMAR, Mondial Assistance Morocco and WAFA Assurances Siege Social by sharing a client base.
But there is more to it. Morocco is also attractive for Allianz due to an offshore zone called Casablanca Finance City, which aims to position Casablanca as a regional financial hub in the continent and a gateway into the African markets.
Moroccan companies are expanding to Sub-Saharan countries, Atkins said, and the country is a good hub for insurance growth in Africa.
Allianz is currently present in 15 countries in Africa, but it is looking elsewhere in the continent for expansion as it seeks untapped demand for insurance products. “Many African companies need the types of financial services Allianz offers,” Atkins said.
