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EFG Hermes, GB Auto to acquire majority stake in life insurance Tokio Marine Egypt Family Takaful - Daily News Egypt

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EFG Hermes, GB Auto to acquire majority stake in life insurance Tokio Marine Egypt Family Takaful

Under agreement, which is subject to regulatory approval, EFG Hermes Finance and GB Capital will each own 37.5% of the company.


EFG Hermes through its non-bank financial institution (NBFI) arm, EFG Hermes Finance Holding and Ghabbour Auto (GB) Auto through its NBFI arm GB Capital, announced on Sunday their entry into a definitive sale and purchase agreement (SPA) to acquire a 75% stake in life insurance player Tokio Marine Egypt Family Takaful in a deal worth EGP 84.8 m.

Under the agreement, which is subject to regulatory approval, EFG Hermes Finance and GB Capital will each own 37.5% of the company.

Tokio Marine Egypt Family Takaful is owned by Japan-based Tokio Marine Group, a world-renowned company in insurance and reinsurance and the largest general insurer in Japan. The company offers individual and corporate clients a variety of solutions, covering healt and life insurance needs.

Commenting on the agreement, Chairperson and CEO of GB Auto Raouf Ghabbour said they know that the Egyptian life insurance industry is primed for growth, with significant untapped potential for rapid and profitable expansion.

“Given these promising conditions, we have decided to grow our business in this lucrative space while enhancing the sophistication and size of the market to the benefit of all players,” Ghabbour said.

“We are honoured to partner with EFG Hermes and Tokio Marine Group and are confident that our new relationship represents the natural progression of our already established, expansive, and fast-growing NBFI portfolio of offerings in the leasing, consumer finance, factoring, micro finance, mortgage finance, securitisation, and fleet-leasing arenas.” he continued.

Meanwhile Group CEO of EFG Hermes Holding Karim Awad said, “The Egyptian insurance market is largely under-penetrated compared to its potential, with premiums as a percentage to GDP still in the single digits. Thanks to an improving economic outlook, capital regulations focused on insurance penetration, and wider financial inclusion, Egypt’s insurance industry is poised for substantial growth in line with the kind of growth anticipated for other emerging markets.”

Awad added that their partnership came at the perfect time and falls perfectly in line with their strategy to expand their NBFI offering.

He explained that EFG`s NBFI footprint today encompasses leasing, microfinance, fintech-enabled consumer finance, mortgage finance, factoring, and securitisation.

“We can think of no better partner with whom to move forward on this than GB Capital and Tokio Marine Group,” Awad concluded.

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https://dailyfeed.dailynewsegypt.com/2019/12/23/efg-hermes-gb-auto-to-acquire-majority-stake-in-life-insurance-tokio-marine-egypt-family-takaful/
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