LowVII Reinsurance & Specialty Risk3 November 2026, Tuesday

AFG Assurances doubles its insurer network in francophone Africa

AFG Assurances, the insurance arm of Atlantic Group, aims to increase its number of companies from 7 to 14 with an investment from Mediterrania Capital Partners. The deal was announced in Abidjan on 3 November; the size of the investment was not disclosed.

Location: ABIDJAN

AFG Assurances currently operates 7 life and non-life insurers across West Africa, Central Africa and the Indian Ocean, including in Benin, Cameroon, Mali and the Comoros. Sources differ on the number of new companies: allAfrica refers to 5 new subsidiaries, Ecofin to 7 new companies; both agree on the target of 14. According to Ecofin, insurance accounts for only 5.8% of the group's consolidated revenue of 787 billion CFA francs. The group plans to use its bank branches as a bancassurance channel.

In the 14-country CIMA zone, insurance penetration is about 1.5%, almost half the sub-Saharan average. The region's premiums total about 2.9 billion euros and grew by an average of 9% a year between 2018 and 2024. According to Swiss Re, Africa generated 69 billion dollars in premiums in 2024, less than 1% of the world market; about 70% of that came from South Africa.

Talay assessment

Bottom line

Private capital sees francophone Africa, where penetration stands at 1.5%, as a growth market. Doubling the number of local companies makes more risk insurable, but while local balance sheets stay small, much of that risk will have to be ceded abroad through reinsurance. The likeliest path is gradual growth of the network and rising demand for external reinsurance from the region.

Likely effects

Regional reinsurance demandPositive6 months+
Newly established local insurers start with little capital and will have to cede large and catastrophe risks to African and European reinsurers.
Protection gapPositive6 months+
Distribution through bank branches is the fastest channel for lifting penetration from 1.5%; closing the gap will still take years.
Local competitionUncertain1–6 months
A 14-company network could sharpen price competition in a 2.9-billion-euro market growing 9% a year.

Possibilities, ranked

1
Gradual expansion60%
AFG sets up the new companies over several years, with the first licences coming from CIMA markets.
Watch: Announcements of new licences granted to AFG in the CIMA zone
2
Acquisitions speed things up30%
Rather than starting from scratch, the group takes over existing local insurers and the network grows quickly.
Watch: AFG announcing the takeover of a local insurer
3
The plan slows10%
Capital or licensing hurdles delay the expansion.
Watch: No new company announcements throughout 2027

Probabilities are calibrated judgement based on the sources, not measurement, and are revised as new information arrives. Not investment advice.

Market reaction

Indicators affected

CIMA penetration▼ ~1.5%
AFG company target▲ 7→14