Axa’s insurance companies in Africa will offer custom-made products to clients through AIG’s ecosystem of marketplaces and classifieds services.
Fast developing
Axa and Jumia view Africa as a fast developing market for financial services and insurance products, benefitting from low penetration rates, a rise in the middle class, and urbanisation.
“[The] internet is creating unparalleled opportunities for consumers and businesses in Africa to connect and do business in a new way. We continue to be very excited about the growth prospects of Jumia and this new partnership will enable us to capture them,” said Sacha Poignonnec and Jeremy Hodara, founders and co-CEOs of Jumia and AIG.
Innovate and connect
Axa will invest €75m (£57.7m, $83.6m) and own approximately 8% of the capital of AIG, becoming a shareholder along with MTN, Rocker Internet and Millicom.
“We expect Africa’s e-commerce and online businesses to develop rapidly as a result of the strong growth of the middle class coupled with the increasing mobile phone and internet penetration,” Poignonnec and Hodara said.
“With Rocket Internet’s extensive background in online business models, MTN as leading mobile carrier with its broad African presence, and now the partnership with Axa in insurance products and services, we are in a great position to continue to innovate and connect businesses to the fast growing consumer demand,” they said.
Long-term commitment to Africa
“This transaction confirms Axa’s long-term commitment towards the African markets and represents another step in our development on the continent,” said Denis Duverne, deputy chief executive of Axa.
“Africa is home to some of the most dynamic and promising insurance markets in the world and our partnership with Africa Internet Group will enable us to accelerate materially our development by having access to their rich customer base and to their state-of-the-art e-commerce technology,” Duverne said.
Jumia, AIG’s main subsidiary, is currently present in 11 African markets and grew its transaction volume (GMV) by 265% during first 9 months of 2015 to reach €206m.
Completion of the transaction is subject to customary closing conditions and is expected to take place in the first quarter of 2016.
