Germany’s Allianz Group will acquire an 8 percent stake in Africa’s largest reinsurer, Africa Re, in a cash deal worth $81 million.

The deal makes Allianz one of Africa Re’s largest shareholders and also helps boost its presence in a region with a number of fast-growing markets. Both sides plan to cooperate in areas including reinsurance, business development, sharing of best practices, risk management tools and training/technical support in emerging areas and underserved markets.

“Having identified Africa as one of the future growth markets, we continue to invest step-by-step in the continent. This investment in Africa Re is a major milestone for Allianz’s long-term growth strategy in Africa,” Niran Peiris, member of the board of management of Allianz SE, said in prepared remarks.

Peiris is responsible for Global Insurance Lines & Anglo Markets, Reinsurance, Middle East and Africa.

The post-investment goal is for Allianz and Africa Re to jointly support insurance penetration in Africa and the economic development of the continent.

“This partnership with Allianz Group—a reliable and strong partner with a global network, particularly in agriculture and the emerging field of cyber insurance—will definitely strengthen Africa Re’s capacity to offer its clients services of higher quality,” Corneille Karekezi, Africa Re’s group managing director and chief executive officer, said in prepared remarks.

Africa Re, with 42 years of operational experience on the continent, has in-depth business knowledge of the African markets and an expansive network across both regions and linguistic communities.

Source: Allianz Group, Africa Re