Africa Insurance M&A: Global Insurers’ Next Frontier

14 June 2016
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Key takeaways

  • This article provides an overview of recent M&A activity in the insurance sector in Africa, including commentary on some of the key themes that we have identified. We also summarise some of the main regulatory and compliance issues that an international investor may face when investing in Africa, as well as provide a more in-depth view on the insurance markets in Kenya, Nigeria and South Africa.
  • South African insurers and other Pan-African consolidators are already actively making acquisitions in African developing markets. These deals combined with the lack of greenfield opportunities imply that global insurers looking to enter the market will need to develop their African insurance strategy and weigh-up the risks involved.
  • There are legitimate concerns over doing business in Africa due to political, economic and anti-bribery and corruption issues; however, these risks should not be overplayed. Conducting satisfactory jurisdictional, operational and historical due diligence, adopting stringent governance policies and obtaining appropriate contractual protections from a local partner should, in the aggregate, mitigate such risks to an acceptable level for a global insurer seeking to enter or develop its presence in Africa.