Egypt - EFG Hermes acquires majority stakes in Tokio Marine
Saturday, 08 29 2020, Category: Islamic Insurance, Country: Egypt
EFG Hermes announced the completion of a 75 percent stake acquisition in Tokio Marine Egypt Family Takaful, in a deal worth LE 84.75 million. The deal was routed through EFG’s Non-bank financial institution (NBFI) EFG Hermes Finance Holding and GB Auto through its NBFI GB Capital.
EFG Hermes Finance and GB Capital will each hold a stake of 37.5 percent of the company. Tokio Marine Group, a world-renowned leader in insurance and reinsurance and the largest general insurer in Japan will own the remaining 25 percent.
Tokio Marine Egypt Family Takaful provides corporate solutions to individual and corporate clients. The acquisition expands the scope and reach of EFG Hermes’ and GB Auto’s providing a platform for entering various market segments. The acquisition will be leveraged to complement the companies’ existing NBFI operations through the introduction of innovative insurance products.
Egypt’s insurance industry penetration is low compared to many countries. The insurance sector is set to benefit from the government’s financial inclusion plans. The government is also planning to put in place a regulatory system to ensure planned growth of the sector.
Tokio Marine Egypt Family Takaful – which will be re-launched under a new brand in the coming months – has appointed Sohail Ali as chief executive officer. He has two decades of insurance experience across multiple markets and will lead the company to establish comprehensive insurance products and services.