Two global insurance heavyweights, Wafa Assurance and AXA Assurance, are locked in a fierce competition to acquire a controlling stake in Delta Insurance, a major Egyptian insurance provider. The announcement, made by the Cairo Stock Exchange on Monday, December 9, marks a pivotal moment in the companies’ strategic expansions into Africa’s burgeoning insurance market.
A strategic tug-of-war
Wafa Assurance, through its local subsidiary Wafa Life Insurance Egypt, aims to secure at least 51% ownership of Delta Insurance. Meanwhile, French insurer AXA, operating via AXA Investment Egypt, is eyeing a more significant slice—targeting a minimum 75% stake in the Egyptian Exchange-listed company.
Both contenders are required to submit binding purchase offers under Egyptian regulations. To proceed, they have sought regulatory approval to conduct due diligence, an exhaustive evaluation of Delta Insurance’s financial, legal, operational, and strategic health before finalizing any acquisition.
Delta Insurance: A strategic gem
Delta Insurance is a prominent player in Egypt’s life and non-life insurance sectors. It is majority-owned by Egyptian Kuwaiti Holding (EKH), which controls 63.39% of the company. With EKH helmed by influential Egyptian and Kuwaiti business leaders, Delta represents a valuable asset in Egypt’s rapidly growing market.
Home to over 120 million people, Egypt ranks as the third-largest insurance market in Africa, accounting for 4% of the continent’s total insurance premiums in 2023. This thriving environment has become a magnet for global industry leaders eager to expand their footprint on the continent.
Wafa Assurance: Bolstering its presence in Egypt
Since entering the Egyptian market in 2021, Wafa Assurance, led by CEO Boubker Jaï, has focused on life insurance, leveraging its connection with parent company Attijariwafa Bank. The group, active in Egypt since 2017, strengthened its presence by acquiring Barclays Bank Egypt, now operating as Attijariwafa Bank Egypt SAE.
With 64 branches and a diverse clientele of individuals and businesses, the bank provides Wafa Assurance with a robust foundation for growth in the Egyptian market.
AXA: A veteran in Egypt’s insurance arena
AXA, on the other hand, has been a key player in Egypt since 2015 following its acquisition of Commercial International Life Insurance Company (CIL). The French multinational has established itself as a leader in life, savings, and retirement insurance. Its experience and established presence offer AXA a strategic advantage as it vies for Delta Insurance.
A broader African battle
The competition for Delta Insurance extends beyond Egypt. It symbolizes a larger struggle between global insurers to dominate Africa’s promising insurance markets. Egypt, with its sizeable population, vibrant economy, and growth potential, is a key battleground for international players.
The final outcome hinges on the quality of the binding offers, the regulatory approvals, and the ability to win over Delta Insurance’s shareholders. This acquisition represents a decisive move in shaping the future of Africa’s insurance landscape.
