Reuters
by Jonathan Gould
Allianz has agreed to buy Morocco’s seventh biggest property and casualty insurer from Zurich Insurance for 244 million euros ($275 million), the German insurer said on Friday.
Zurich Assurances Maroc has 600,000 customers and generated 114 million euros in gross premiums in 2015, Allianz said in a statement, adding that it would also make use of the unit’s licenses to sell life and health insurance products.
Allianz said it views Africa as an important future growth market but declined to say if more buys were in the offing.
“We are looking at opportunities when they arise and will remain disciplined,” an Allianz spokesman said.
Morocco is the region’s second biggest insurance market after South Africa and is expanding by 6-7 percent annually, Allianz said.
“Morocco presents good growth prospects for both personal and commercial lines,” said Allianz board member Sergio Balbinot.
“We will be able to support both our Moroccan and international customers in their local and international business,” he said, adding that he expected the transaction to close at the end of 2016, following regulatory approval.
Zurich said a review of the company’s business in Morocco found that it saw limited potential to achieve an operating scale that warranted the continuing investment of capital and management resources.
($1 = 0.8876 euros)
(Reporting by Jonathan Gould; Additional reporting by Joshua Franklin; Editing by Arno Schuetze and Adrian Croft)
