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Global Insurance Leader AXA Partner w/ AIG To Offer Insurance Products To Africa

by Felix Omondi
Global Insurance Leader AXA Partner w/ AIG To Offer Insurance Products To Africa

Africa Internet Group (AIG), one of the leading e-commerce groups in Africa today announced its partnership with AXA Group, an international leader in insurance and asset management. AIG and AXA have partnered to provide insurance products and services to consumers in the African market through all of the AIG’s online and mobile platforms operating in Africa.

The partnership will AXA customize its insurance products to be offered on AIG’s entire e-commerce ecosystem of online marketplaces and classifieds services; across all the African where AIG is present. The partnership agreement also includes a new development that will see AXA join others like MTN, Millicom and Rocket Internet as shareholders of AIG.

This development only serves to reinforce the growing belief among investors that Africa is fast becoming a prime market for financial services and insurance products. The African markets currently have appealing market fundamentals such as low penetration rates, rising middle class, rapid urbanization, and a big youthful population.

The co-founders of AIG in a press statement sent to Innov8tiv wrote, “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.

With Rocket Internet’s extensive background in online business models, MTN as leading mobile carrier with its broad African presence, and now the partnership with AXA in insurance products and services, we are in a great position to continue to innovate and connect businesses to the fast-growing consumer demand.”

From the partnership agreement, AXA is said will invest Euro 75 million and hold approximately 8% stake at AIG. Although execution of this agreement to completion is subject to customary closing conditions, like the closure of previous investment round, which is expected to happen within the Q1 of 2016.

The additional capital injection into AIG is supposed to boost the company’s balance sheet and go a long way towards contributing to its growth in Africa. Among its subsidiaries are:

Jumia, which is currently present in 11 countries across Africa

Kaymu an online shopping community

Hellofood an online marketplace for food delivery

Jovago an online marketplace for hotel and travel resorts bookings

Lamudi a real estate classified online marketplace

Carmudi an online classified for cars

Everjobs a place for hires and job hunters to meet

Their counterpart Denis Duverne, the Deputy CEO at AXA added, “This transaction confirms AXA’s long-term commitment towards the African market and represents another step in our 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. Going forward, we aim to enable African consumers to better access insurance solutions to create sustainable financial well-being throughout their lives and those of their dependants.”

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