AXA & Chaucer Form Strategic Partnership to Provide African Specialty Insurance

April 19, 2016

AXA is targeting the rapidly expanding market for African specialty insurance by partnering with Chaucer, a Lloyd’s specialty insurance group.

The new venture, called “AXA Africa Specialty Risks,” will be dedicated to covering specialty insurance lines in Africa, with a focus on business such as political risks, energy and infrastructure.

AXA said the two partners have complementary skills. Chaucer focuses on specialty insurance, has strong Lloyd’s underwriting expertise, extensive partnership management experience and established relationships with corporate clients, banks and business producers.

On the other hand, AXA brings to the partnership its marketing capabilities and a strong distribution network. AXA is already present in eight African countries: Algeria (#11 in P&C; #3 in life), Cameroon (#4 in P&C), Egypt (#4 in life), Gabon (#5 in P&C), Ivory Coast (#4 in P&C), Morocco (#3 in P&C; #5 in life), Nigeria (#3 in P&C; #6 in life), as well as in Senegal (#1 in P&C).

Chaucer said the partnership with AXA’s African distribution network will help it extend its specialty underwriting reach and access more specialty business in this rapidly growing market.

Chaucer currently has a 12 percent share of Lloyd’s premiums written in the region and is a market leader in African specialty insurance business. Chaucer established Syndicate 1084 will share the specialty business with AXA through the formation of a Special Purpose Syndicate 6130.

AXA said it will work with Chaucer to establish its own Lloyd’s business in the future.

“Partnering with Chaucer and the Lloyd´s market gives us a great opportunity to develop the growing and profitable specialty lines business in Africa by setting up a pan-African specialty insurance entity that will complement our African footprint and our presence in commercial lines,” said Denis Duverne, director, deputy chief executive officer of AXA, who is in charge of finance, strategy and operations.

Johan Slabbert, chief executive officer of Chaucer, said: “This partnership highlights the growth opportunities that this region provides, as well as demonstrates our capabilities in emerging markets and our talent for working creatively with industry partners. Our strategic alliance with AXA will deepen our access to the African marketplace, which will produce significant advantages for Chaucer in the years ahead.”

AXA said this new venture is a further step in the development of AXA’s strategy of acquisitions and partnerships in Africa, which include:

  • The 2014 acquisition of 77 percent of the composite insurance company AXA Mansard plc in Nigeria.
  • The 2015 partnership with the IFC-World Bank to develop parametric insurance.
  • The acquisition in March 2015 of a 7.15 percent stake in African Reinsurance Corp., the leading African reinsurer.
  • The acquisition in September 2015 of an 18.6 percent stake in Eranove, a leading West African utility company.
  • An exclusive 10-year life & savings bancassurance agreement formed in July 2015 with Commercial International Bank, the number one private-sector bank in Egypt.
  • The acquisition of Commercial International Life Insurance Co., also in July 2015.
  • A partnership formed in February 2016 with Africa Internet Group (AIG), a leading e-commerce group, where AXA will become the exclusive provider of insurance products and services through Jumia and other AIG online and mobile platforms. At the same time, AXA announced a €75 million ($84.8 million) investment in AIG, taking approximately an 8 percent stake in the company.

Source: AXA and Chaucer

Topics Mergers Excess Surplus Property Casualty Lloyd's AXA XL

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