Africa Internet Group (“AIG”) , the owners of Jumia, Easy Taxi, Jovago, Carmundi etc. has agreed an insurance deal with AXA owners of AxaMansard Insurance Plc. According to a press released by both companiws, AXA will become the exclusive provider of insurance products and services through Jumia and other AIG online and mobile platforms in Africa.
AXA’s African insurance companies plan to propose custom-made insurance products to Jumia and AIG’s e-commerce client base through its ecosystem of marketplaces and classifieds services. The deal also involves a share exchange where, AXA will also become a shareholder of AIG, along with MTN, Rocket Internet and Millicom.
Founders of Jumia and AIG Sacha Poignonnec and Jeremy Hodara had this to say about the deal
“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…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.
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.”
Denis Duverne, Deputy CEO of AXA had had this to say about the deal
“This transaction confirms AXA’s long-term commitment towards the African markets and represents another step in our development on the continent. 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. Going forward, we aim to enable African consumers to better access insurance solutions to create sustainable financial well-being throughout their lives and those of their dependants”.
As a result of the transaction, AXA will invest Euro 75 million and own approximately 8% of the capital of AIG effectively giving AIG a valuation of about $937.5 million. Going by this deal it appears Axa Mansard now has a broader market from which it can now sell insurance services. Jumia and Jovago both have one of the biggest online retail market in Africa and in Nigeria which Axa Mansard could leverage on to sell insurance. For example, if you are getting a booking on Jovago you could be offered a deal to buy travel insurance. When you also buy an electrical appliance on Jumia you might also see a link asking you to buy insurance. Selling core insurance products online is also another market for insurance companies and it is likely that very soon people can buy car insurance, life policies etc. from their mobile phones.