Egypt: AXA partners with Commercial International Bank
Source: Middle East Insurance Review | Sep 2015
AXA is entering into a 10-year exclusive bancassurance agreement with Commercial International Bank (CIB), a leading private-sector bank in Egypt, to distribute life and savings products, focusing on unit-linked and protection & health insurance.
As part of the transaction, AXA will acquire 100% of Commercial International Life Insurance Company (CIL), a leading Egyptian life insurer, jointly owned by Legal & General (55%) and CIB (45%), for a cash consideration of EGP763 million (US$97 million), subject to price adjustment at completion. In addition, AXA will pay to CIB an access fee and commissions under the bancassurance agreement.
CIB has 60,000 corporate customers and a network comprising 166 branches and 10,000 points of sales. CIL is the third-largest life and savings insurance player in Egypt, with a 15% market share, and offers both unit-linked and protection products. It recorded 23% annual premium growth from 2012 to 2014.
In a statement, AXA said the transaction will help accelerate its development in Egypt, following the grant of its preliminary non-life licence in March 2015, and more generally to pursue the strengthening of its footprint in the Middle East and Africa. It will also support the shift in business mix towards more unit-linked and protection & health products, in line with AXA strategy.
Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to take place by the end of 2015.
EGP1 = US$0.13