Morocco’s Wafa Assurance Acquires Majority Stake in Egypt’s Delta Insurance

Marrakech – Egypt Kuwait Holding (EKH) has completed the sale of its entire 63.39% stake in Delta Insurance to Morocco’s Wafa Assurance. The transaction was executed at EGP 40 per share, valuing the deal at approximately EGP 3.169 billion (around $67 million).

EKH announced the completion in a statement to the Egyptian Exchange (EGX) on Sunday. The company recorded a profit of $46 million on a standalone basis and $3 million on a consolidated basis from the sale.

The transaction was carried out in accordance with Article 34 of the EGX’s listing and delisting rules. These rules were issued under Financial Regulatory Authority (FRA) Board Resolution No. 11 of 2014 and its subsequent amendments, following EKH’s board approval on October 22.

Wafa Assurance had initially launched a mandatory tender offer (MTO) for a majority stake in Delta Insurance on June 16. The offer sought to acquire at least 51% of the Egyptian Exchange-listed insurer at EGP 40 per share, valuing Delta at approximately EGP 5 billion ($105.3 million).

The Moroccan insurer now plans to delist Delta from the EGX. It also intends to merge Delta Life with its own life insurance arm within months of closing the deal.

This acquisition expands Wafa’s reach in Egypt’s insurance market, which remains underpenetrated with an insurance penetration rate below 1%. With Egypt’s population exceeding 120 million, the market represents a significant growth opportunity for foreign insurance players.

Wafa Assurance already operates in the Egyptian life insurance market through its subsidiary, Wafa Life Insurance Egypt, established in 2021. This acquisition allows the Moroccan firm to expand into property and casualty and health segments within the Egyptian market.

For EKH, this sale is part of a broader portfolio rebalancing strategy. CEO Jon Rokk stated in September that the company was conducting a housekeeping exercise to exit non-core holdings and sharpen its sectoral and geographic diversification.

He indicated the group’s next growth phase will focus on international expansion, including new energy and industrial investments in Saudi Arabia and the UK, while maintaining strong exposure to Egypt.

EFG Hermes brokered the transaction and acted as EKH’s financial advisor, while Sharkawy & Sarhan and A&O Sherman Morocco provided counsel. Attijari Conseil served as financial advisor, while Forvis Mazars provided tax and financial advisory services from both Morocco and Egypt.