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Growing middle class Africa draws insurers

European and South African insurers are buying local firms focusing mainly on life insurance and pensions

London

A GROWING middle class in sub-Saharan Africa is enticing European and South African insurers to buy local firms focusing mainly on life insurance and pensions, in the face of mature markets and strong competition at home.

Rapid economic growth in countries such as Ghana, Kenya and Nigeria has increased the number of people with money to spend on insurance to protect their wealth, while regulatory changes are encouraging the growth of domestic savings and pensions.

Several major companies, including Swiss Re, Prudential and Sanlam, are buying insurers in Africa, with the focus on life and pension products in the more economically advanced sub-Saharan countries.

Notwithstanding the challenges,...

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