Allianz Group has announced a binding agreement for it to acquire Zurich Assurances Maroc, a subsidiary of Zurich Insurance Company in Morocco.

Zurich Assurances Maroc is one of the largest insurance companies in Morocco, currently ranking at number 7 in the property and casualty market and serving more than 600,000 customers. In 2015, Zurich Assurances Maroc generated 114 million euros in gross premiums written. The company also has a license for life and health insurance products, which Allianz plans to utilise.

Allianz Group in a statement e-mailed to News Express described the acquisition as “a major milestone for Allianz in Africa.”

“Allianz Group views Africa as one of the important future growth markets. The Group is present in 15 countries in Africa. The acquisition in Morocco, Africa’s second-largest insurance market after South Africa, marks an important step for Allianz to be well positioned to capture future growth in the African region,” the statement said.

“This deal is a major milestone for our strategy to expand in Africa. Morocco presents good growth prospects for both personal and commercial lines. We will be able to support both our Moroccan and international customers in their local and international business. In addition, Allianz is an employer of choice in Africa. We look forward to developing and promoting local talents in a growing market,” said Sergio Balbinot, board member of Allianz SE in charge of southern and western Europe, Africa, MENA and India.

The purchase price is 244 million euros. Pending regulatory approvals, the transaction is expected to close end of 2016.

•Photo shows Allianz CEO Delphine Maidou.