Morocco’s Saham Group Snaps Up Angola’s Largest Private Insurer

Morocco’s Saham Group Snaps Up Angola’s Largest Private Insurer

From Bloomberg

Groupe Saham, a Morocco-based investment company, bought GA Angola Seguros SA, Angola’s largest closely held insurance company by revenue, for an undisclosed amount, GA Chief Executive Officer Fernando Dolbeth Assuncao said.

Saham, founded in 1995 by Moulay Hafid Elalamy, operates 35 insurance companies in 19 countries across Africa and the Middle East, including Benin, Ivory Coast, Cameroon, Mali, Gabon, Senegal and Togo. The deal “will significantly contribute to the development of the Angolan insurance market,” Assuncao said in a statement issued today.

The Angolan insurance market is valued at about $1 billion a year in gross written premiums, with policies dominated by the oil industry, according to a May report by Trevor Barsdorf, an analyst at Johannesburg-based Global Credit Rating Co. The country is Africa’s largest crude producer after Nigeria.

GA’s revenue was $161 million or about 16 percent of Angola’s market last year, Chief Underwriter Shawn Kriedemann said in an e-mailed response to questions today.

The company has an A rating among the country’s 13 insurance companies, Barsdorf said in the report. Saham’s acquisition, similar to others it’s done in Africa, shows how larger insurance companies are seeking regional partners in countries with attractive growth opportunities, he said in e-mailed response to questions.

“The corporate activity highlights a confidence expressed by external stakeholders regarding the Angolan insurance market,” Barsdorf said. The deal “ultimately bodes well for the underlying insurer as it could provide additional balance sheet capacity.”

Reported by Colin McClelland/Read more at Bloomber.