Insurance groups in French-speaking black Africa: The CIMA zone

The idea of setting up an insurance market in French-speaking black Africa dates back to 1962 with the establishment of CICA whose headquarter was moved from Paris to Libreville in 1973. Following a long process, CICA gave birth to CIMA in 1992. The CIMA treaty came into force on February 15, 1995.

The institution of a 14-state market governed by the same legislation has opened up new perspectives to insurance companies which were only starting to grow in narrow and unstructured markets.

Through the years, the insurers of this new economic space have managed to take advantage of the different back up structures designed to support their activities: new insurance code, joint reinsurance companies (CICA Re), Yaounde institute for the training of executive staff members, …

The birth of transnational African groups

The economic crisis, which hit sub-Saharan countries during the 1990s culminating in the devaluation of the CFA franc in 1994, marked the turning point in the insurance of the CIMA zone. The vacuum created by the withdrawal of many European operators was quickly offset by young African executives who managed to raise capital and launch on their own in the construction of new groups. That is how NSIA, SUNU and COLINA came on stage.

Today, NSIA, SUNU and COLINA groups and the two traditional French operators AXA and AGF control 50% of the CIMA zone market.

The COLINA group

Founded in 1980 following the establishment of the société Libano-Suisse in Côte d'Ivoire and the takeover of the Groupement Français d'Assurance in Africa, COLINA is an insurance group with an inter-African interest. It has developed mainly in Côte d'Ivoire and in the CIMA zone countries. Its 2007 turnover reached 55.889 billion FCFA (127.929 million USD).

Benchmarks

• 2008:
  Creation of COLINA Senegal
• 2006:
  Opening of COLINA Re (Mauritius) and COLINA Gabon
• 2005:
  Opening of COLINA Madagascar
• 2004:
  Opening of a COLINA Europe representation office in France
• 2001:
  Development of life operation with the takeover of Groupama's life subsidiaries in Côte d'Ivoire and Benin
• 1999:
  Establishment of COLINA in Burkina Faso
• 1996:
  Expansion within CIMA countries thanks to the purchase of AGF portfolios in Togo and Mali
• 1989:
  Acquisition of COLINA, a subsidiary of the insurance company Cigna in Côte d'Ivoire

Gathering eleven insurance companies established in ten countries, the COLINA group has a representation office in Paris and 400 collaborators.

COLINA's life and non life companies as at 31-12-2007

in USD

Company	Category	Country	Written premium	Incurred losses	Loss ratio	Expenses ratio	Net result	Combined ratio
COLINA	NL	Côte d'Ivoire	47 169 423	25 554 396	55%	26%	4 204 893	81%
COLINA Vie Côte d'Ivoire	L	Côte d'Ivoire	34 124 412	16 547 181	NA	17%	4 021 773	NA
La citoyenne Assurances	NL	Cameroon	13 649 307	4 843 524	43%	35%	1 961 673	78%
COLINA	NL	Mali	10 030 398	1 840 356	19%	31%	1 480 983	50%
COLINA AFRICA VIE	L	Benin	5 562 270	1 657 236	NA	28%	306 726	NA
COLINA	NL	Burkina Faso	4 754 253	1 677 837	36%	42%	331 905	77%
COLINA	NL	Gabon	4 513 908	1 240 638	38%	47%	-400 575	85%
COLINA	NL	Togo	3 708 180	1 437 492	33%	47%	334 194	80%
COLINA ALL LIFE	L	Cameroon	2 758 245	1 043 784	NA	41%	-36 624	NA
COLINA	NL	Madagascar	1 659 525	235 767	NA	50%	-11 445	50%
Total			127 929 921	56 078 211	-	28%	12 193 503	-

Source FANAF 2009 L= Life ; N= Non Life

The NSIA group

The Nouvelle Société Interafricaine d'Assurances (NSIA) was set up in 1995 in Côte d'Ivoire by Jean Diagou.
It started operating in 1996 with the takeover of the French insurer's AGF's Ivorian subsidiary and the acquisition of “Assurances Générales de Côte d'Ivoire Vie” (AGCI Life), a subsidiary of AGCI-IARD (AGCI Non Life), thus creating the NSIA-AGCI Group.
Ever since, the group has developed in Benin, Gabon, Senegal, Congo, Togo and Cameroon.

Benchmarks

• 2007:
  Creation of NSIA Cameroon
• 2006:
  Acquisition of the Banque Internationale de l'Afrique de l'Ouest (BIAO) in Côte d'ivoire
• 2005:
  Opening of NSIA Togo, NSIA Vie Gabon, NSIA Vie Benin, NSIA Vie Senegal
• 2004:
  Creation of NSIA Congo and ANG becomes NSIA Gabon
• 2002:
  Creation of NSIA Senegal
• 2000:
  Creation of Assurances Nouvelles du Gabon (ANG) after the buyout  of Anciennes Mutuelles du Gabon
• 1998:
  Establishment of the Nouvelle Société d'Assurances du Benin (NSAB)
• 1995:
  Creation of NSIA in Côte d'Ivoire by Jean Diagou

Displaying an average annual growth rate above 20% for five years now, the NSIA Group has reported a turnover of 56.110 billion FCFA (128.436 million USD) in 2007.

The group is upgrading its structures through the development of new distribution channels. It has opened its capital to foreign investment. At the end of 2008, Emerging Capital Partners, an investment fund based in Tunis, entered NSIA's capital with up to 35 million EUR (49.34 million USD), that is, 20% of NSIA's capital.

The group intends to consolidate its presence inside and outside the CIMA zone by getting established in Mali, Guinea, Angola, Tanzania and Uganda. NSIA is aiming at controlling 15% to 20% of the region's market shares by 2015.
The group currently has 16 insurance companies established in nine countries and a bank in Côte d'Ivoire, BIAO-CI.

NSIA's life and non life companies as at 31-12-2007

in USD

Company	Category	Country	Written premiums	Incurred losses	Loss ratio	Expenses ratio	Net result	Combined ratio
NSIA Gabon	NL	Gabon	31 045 707	13 292 223	46%	34%	1 394 001	80%
NSIA Vie Gabon	L	Gabon	997 311	262 090	-	126%	-480 969	-
NSIA Côte d'Ivoire	NL	Côte d'Ivoire	28 246 260	15 478 218	57%	42%	2 179 128	99%
NSIA Vie Côte d'Ivoire	L	Côte d'Ivoire	18 721 731	7 881 027	-	29%	-911 022	-
NSIA Bénin	NL	Benin	13 527 947	6 921 936	53%	35%	320 460	87%
NSIA Vie Bénin	L	Benin	1 893 590	978 693	-	52%	-91 257	-
NSIA Sénégal	NL	Senegal	13 024 410	4 999 176	42%	36%	1 014 027	78%
NSIA Vie Sénégal	L	Senegal	2 066 803	1 723 105	-	47%	-651 418	-
NSIA Congo	NL	Congo Brazzaville	9 517 662	2 497 299	28%	33%	636 342	62%
NSIA Vie Congo	L	Congo Brazzaville	578 158	336 873	-	123%	-439 998	-
NSIA Togo	NL	Togo	8 817 228	5 033 511	65%	43%	-45 780	108%
Total			128 436 807	59 404 151	-	36%	2 923 514	-

Sources: FANAF 2009, NSIA's website L= Life ; NL= Non Life

The  SUNU group

SUNU is an insurance group currently present in nine CIMA zone countries. SUNU is the first life insurer in the CIMA zone.
In 2007, SUNU's subsidiaries reported a turnover of 52.023 billion FCFA (119.080 million USD). The group's net results have progressed by 21.73%.
Currently, SUNU has 15 insurance companies, ten of which are non life and 800 collaborators.

Benchmarks

• 2006:
  Takeover of all Société d'Investissement's shares in SUNU Assurances Holding
• 2004:
  Resumption of the life operations of the French insurer AXA in Côte d'Ivoire, Cameroon and Gabon
• 2001:
  Creation of SUNU Assurances Holding in association with the Société d'Investissement and the acquisition of two subsidiaries belonging to Mutuelles du Mans in Côte d'Ivoire
• 1999:
  Takeover of five subsidiaries of the AXA group
• 1998:
  Creation of SUNU Finances Holding by Pathé Dione and the signing of a partnership and technical assistance protocol with the AXA group

SUNU's life and non life companies as at 31-12-2007

in USD

Company	Category	Country	Written premiums	Incurred losses	Loss ratio	Expenses ratio	Net result	Combined ratio
Union des Assurances de Côte d'Ivoire VIE	L	Côte d'Ivoire	25 570 419	23 519 475	NA	22%	968 247	NA
Le Millenium Assurances internationales IARD	NL	Côte d'Ivoire	17 911 425	14 963 193	80%	37%	2 327 913	117%
Le Millenium Assurances internationales Vie	L	Côte d'Ivoire	14 548 884	4 955 685	NA	21%	785 127	NA
Union des Assurances du Cameroun Vie	L	Cameroon	10 710 231	7 835 247	NA	17%	844 641	NA
Union Générale des Assurances du Niger	NL	Niger	8 904 210	3 513 615	41%	36%	1 027 761	77%
Union des Assurances du Gabon Vie	L	Gabon	8 174 019	4 870 992	NA	28%	750 792	NA
Union des Assurances du Sénégal Vie	L	Senegal	7 814 646	2 478 987	NA	21%	148 785	NA
Union des Assurances du Togo	NL	Togo	6 496 182	2 760 534	NA	38%	439 488	NA
Union Générale des Assurances du Niger Vie	L	Niger	4 383 435	1 121 610	NA	25%	160 230	NA
Union des Assurances du Togo Vie	L	Togo	3 346 518	1 879 269	NA	27%	775 971	NA
Union des assurances Centrafricaines	NL	Centrafrica	2 929 920	1 112 454	39%	44%	325 038	83%
L'Union Béninoise d'assurances Vie	L	Benin	2 572 836	1 128 477	NA	28%	16 023	NA
L'Alliance Africaine d'Assurances Vie	L	Côte d'Ivoire	2 353 092	748 503	NA	39%	105 294	NA
AVIE SA	L	Benin	1 842 645	98 427	NA	32%	400 575	ND
RAYNAL ASSURANCES	NL	Burkina Faso	1 522 185	588 273	43%	50%	-137 340	93%
Total			119 080 647	71 574 741	-	28%	8 938 545	-

Source FANAF 2009 L= Life ; NL= Non Life

The traditional groups in Africa

Despite sub-Saharan African upheavals, the two operators AXA and AGF have maintained their positions in the region. Both companies amassed premiums worth 97.227 billion FCFA (222.552 million USD) in 2007, thus holding 37% of the global turnover posted by the five groups.
The markets' reduced size makes profits insignificant in comparisons with those achieved in developed countries. Yet, the technical results remain generally better.

The AXA group

AXA inherited the network of former UAP which was then the first insurer in French-speaking Africa. With the disappearance of UAP, AXA was refocused on Europe, America and Asia. By yielding part of its portfolio to the SUNU group, AXA has restricted its operations to non-life insurance.
The group managed to figure within the four major countries in the region: Côte d'Ivoire, Cameroon, Gabon and Senegal. It specialized in industrial risks and in 2007 it posted a turnover of 38.500 billion FCFA (88.126 million USD).

AXA's non life companies as at 31-12-2007

in USD

Company	Category	Country	Written premiums	Incurred losses	Loss ratio	Expenses ratio	Net result	Combined ratio
AXA ASSURANCES	NL	Senegal	25 689 447	25 476 570	99%	42%	5 942 244	141%
AXA ASSURANCES	NL	Cameroon	25 394 166	7 272 153	29%	37%	3 119 907	66%
AXA ASSURANCES	NL	Gabon	19 378 674	4 630 647	24%	47%	933 912	71%
AXA ASSURANCES	NL	Côte d'Ivoire	17 664 213	5 420 352	33%	47%	-979 692	80%
Total			88 126 500	42 799 722	-	43%	9 016 371	-

Source FANAF 2009 L= Life ; NL= Non Life

The AGF group

With the takeover of Préservatrice Foncière, AGF deploys its operation in Africa from a network of 13 subsidiaries located in nine countries; Burkina Faso, Benin, Cameroon, Côte d'Ivoire, Madagascar, Mali, Central African Republic, Senegal and Togo.
Despite the consolidation of the groups, NSIA, SUNU and COLINA, AGF is very present on the African market thanks to an excellent logistics deployed from Paris.
In 2007, the Group AGF Afrique reported premiums amounting to 58.727 billion FCFA (134.426 million USD), that is, the highest turnover achieved by the five groups operating in the region.

AGF's life and non life companies as at 31-12-2007

in USD

Company	Category	Country	Written premiums	Incurred losses	Loss ratio	Expenses ratio	Net result	Combined ratio
AGF Cameroun Assurances Vie	L	Cameroon	21 951 510	9 050 706	NA	13%	1 240 638	NA
AGF Cameroun Assurances	NL	Cameroon	21 940 065	7 038 675	32%	37%	2 305 023	69%
AGF Sénégal Assurances	NL	Senegal	17 318 574	6 253 548	35%	38%	2 176 839	73%
AGF Côtes d'Ivoire Assurances Vie	L	Côte d'Ivoire	16 895 109	14 004 102	NA	20%	1 165 101	NA
AGF Côtes d'Ivoire Assurances	NL	Côte d'Ivoire	16 146 606	4 310 187	27%	33%	959 091	60%
AGF Burkina Assurances	NL	Burkina Faso	8 517 369	3 113 040	37%	50%	1 547 364	88%
AGF Mali Assurances	NL	Mali	8 357 139	3 438 078	45%	35%	1 039 206	80%
AGF Sénégal Assurances Vie	L	Senegal	6 905 913	3 362 541	NA	16%	288 414	NA
AGF Burkina Assurances Vie	L	Burkina Faso	6 093 318	1 664 103	NA	20%	604 296	NA
AGF Bénin Assurances	NL	Benin	3 259 536	672 966	21%	53%	295 281	74%
AGF Togo Assurances	NL	Togo	2 831 493	1 034 628	37%	46%	187 698	83%
AGF Centrafrique Assurances	NL	Centrafrica	2 501 877	2 147 082	79%	55%	128 184	134%
AGF Madagascar Assurances	NL	Madagascar	1 707 594	466 956	30%	57%	-297 570	87%
Total			134 426 103	56 556 612	-	31%	11 639 565	-

Source FANAF 2009 L= Life ; NL= Non Life
Exchange rate as at 31/12/2007: 1 FCFA = 0.002289 USD ; 1 USD = 436.930 FCFA