aigAfrica Internet Group (AIG), parent company of online retailer Jumia, has announced a partnership with insurance and asset management company AXA. The deal will see AXA become the exclusive provider of insurance products and services through Jumia and AIG’s other online and mobile platforms in Africa.

AXA’s insurance companies in Africa will offer custom-made insurance products to Jumia and AIG’s e-commerce client base through its ecosystem of marketplaces and classifieds services.

As part of the partnership, AXA will also become a shareholder of AIG, along with mobile operator MTN, Rocket Internet and Millicom.

AXA will invest 75 million euro (US$ 83 million) for an 8% stake in AIG. This is expected to strengthen AIG’s balance sheet and support its continued growth

In a statement announcing the deal, both AIG and AXA view the partnership as a way to advance the uptake of insurance in Africa

“The internet is creating unparalleled opportunities for consumers and businesses in Africa to connect and do business in a new way. We are excited about the growth prospects of Jumia and this new partnership” said Sacha Poignonnec and Jeremy Hodara, founders and co-CEOs of Jumia and AIG.

“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.”

“Africa is home to some of the most dynamic and promising insurance markets in the world”, Denis Duverne, Deputy CEO of AXA added. “Our partnership with Africa Internet Group will give us access to their customer base and e-commerce technology. Going forward, we aim to enable African consumers to better access appropriate solutions to create sustainable financial well-being throughout their lives and those of their dependants”.

Jumia, AIG’s main subsidiary, is currently present in 23 African markets. Its transaction volume grew by by 265% during the first 9 months of 2015 to reach 206 million euro (US$ 230 milion).

Other AIG services include online shopping community Kaymu, food delivery service Hellofood, hotel booking and travel service Jovago, real estate classifieds platform Lamudi, jobs listing service Everjobs and car classifieds site Carmudi.

Eric Mugendi Author

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