The International Finance Corporation (IFC), a member of the World Bank Group, recently partnered with two insurance companies in Cameroon to create agricultural index insurance products. These products offer payments to covered individuals when weather or other conditions exceed pre-established limits, rather than based on individuals’ losses. IFC is paying a total of XAF 270 million (USD 460,000) to Activa Assurance, a Cameroon-based insurance group operating in West Africa, and AXA Cameroon, a subsidiary of France-based AXA Group, to develop the products for rural borrowers for distribution through organizations such as commercial banks, microfinance institutions (MFIs), cooperatives and retailers of agricultural supplies. The goal is for the companies to sell a total of 135,000 agricultural index insurance contracts within two years.
Established in 1998, Activa Assurance is a privately held insurance company headquartered in Douala, Cameroon, with subsidiaries in Guinea, Ghana, Liberia and Sierra Leone. As of year-end 2017, the company held CFA 19.2 billion (USD 33 million) in total assets, earned CFA 1.5 billion (USD 2.5 million) in yearly profits, and wrote yearly premiums totaling CFA 16.9 billion (USD 29 million).
AXA Group is a multinational insurance company with 105 million clients and 171,000 employees in 61 countries. As of June 2019, the group reports total assets of 763 billion (USD 850 billion) along with net income of EUR 2.33 billion (USD 2.6 billion) and gross written premiums of EUR 55.7 billion (USD 62 billion) for the year. Recent financial details on AXA Cameroon are not available.
IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2019, IFC reports total assets of USD 94.3 billion.
The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2019, it has 189 member nations. The group encompasses: (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2018, the World Bank has committed USD 66.9 billion of funding to partner countries.
By Eugene DeCosse, Research Associate
Sources and Additional Resources
Business in Cameroon article
https://www.businessincameroon.com/agriculture/0508-9394-cameroon-world-bank-backs-agricultural-index-insurance-project-with-xaf270-mln
Activa Assurance homepage
www.activa-cameroun.com
PitchBook profile on Activa Assurance
https://pitchbook.com/profiles/company/166631-32
AXA homepage
https://group.axa.com
AXA financial reports
https://group.axa.com/en/investor/annual-and-interim-reports
IFC homepage
https://www.ifc.org
IFC annual report
https://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/annual+report/download
World Bank homepage
https://www.worldbank.org/
World Bank annual report
https://www.worldbank.org/en/about/annual-report
MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $225m to Banco Agromercantil de Guatemala (BAM) to Expand Lending for Housing; Small, Medium-sized Enterprises (SMEs)
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-225m-to-banco-agromercantil-de-guatemala-bam-to-expand-lending-for-housing-small-medium-sized-enterprises-smes/
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