EFG Hermes and GB Auto are reported to have invested about US$ 5.34 million (EGP 84.75 million) in the acquisition of a 75% stake in Tokio Marine Egypt Family Takaful.
Tokio Marine Group, a world-renowned leader in insurance and reinsurance and the largest general insurer in Japan will own the remaining 25%.
Coinciding with the transaction, Tokio Marine Egypt Family Takaful – which will be relaunched under a new brand in the coming months – has appointed Sohail Ali as chief executive officer.
Tokio Marine Egypt Family Takaful offers individual and corporate clients a variety of insurance solutions.
The acquisition considerably expands the scope and reach of EFG Hermes’ and GB Auto’s respective NBFI offerings, providinga platform from which to widen and deepen EFG Hermes’ and GB Auto’s exposure to various market segments.
The acquisition will be leveraged to complement the companies’ respective existing NBFI operations through the introduction of innovative insurance products.
Karim Awad, Group CEO of EFG Hermes Holding, said: “The completion of this acquisition is a definitive milestone in EFG Hermes’ strategy to offer the Egyptian market a comprehensive suite of NBFI services.”
“We are confident that this move comes at the right time for us and for the broader market, and anticipate that it will prove a key step in consolidating our position as a differentiated, broad-spectrum provider of financial services,” Awad added.
Egypt’s insurance industry remains significantly underpenetrated compared to regional and global peers.
Against this backdrop, EFG Hermes’ and GB Auto’s entering into the industry promises to generate substantial value as it expands in line with expectations for emerging markets.