Algeria: Life unit of AXA increases capital by 80% to $19.6 mln
Source: Middle East Insurance Review | Feb 2018
The life unit of AXA Algerie has increased its capital to DZD2,250 million (US$19.6 million) from DZD1,250 million.
“This important step demonstrates the confidence of our shareholders and will enable us to accelerate our development strategy in Algeria,” said Mr Pierre Vasserot, CEO of AXA Algerie, at a media conference held at the insurer’s new head office recently.
The shares of AXA Algerie are divided among three shareholders: the AXA group (49%), the National Investment Fund (36%) and the Algerian Foreign Bank (15%).
AXA Algerie has both life and non-life units in the country. Mr Vasserot said that the company achieved an estimated growth rate of 30% in its turnover in 2017, comprising 10% growth for its non-life unit and 60% growth for its life business.
In terms of market share, Mr Vasserot said that AXA held 4% of the Algerian market, estimated at DZD134 billion in 2017, placing the group in seventh position in the insurance market. AXA’s operations turned profitable in 2016, for the first time, five years after its establishment. Usually, an insurance company reaches profitability after 7-8 years of activity.
Mr Vasserot also announced plans to launch a new professional product dedicated specifically to SMEs in April 2018. The insurer sees enormous market potential especially among small companies whose coverage rate is still low. M
DZD100 = US$0.87