Morocco’s Wafa Assurance Seeks Growth via Delta Insurance Acquisition

Morocco’s insurance giant Wafa Assurance is reinforcing its position in Egypt’s expanding insurance sector through a strategic acquisition. On June 10, 2025, the company submitted a formal public tender offer (OPA) to Egypt’s Financial Regulatory Authority (FRA) for a controlling stake in Delta Insurance, a well-established player in the Egyptian market.

This move signals the comapany’s ambition to expand operations across North Africa and reflects growing interest in cross-border insurance investments throughout the MENA region.

Wafa Assurance Aims for Controlling Stake in Delta Insurance

According to the filed offer, the company seeks to acquire at least 51% of Delta Insurance’s capital at a price of EGP 40 per share, equivalent to approximately USD 0.8. This offer values Delta Insurance at nearly EGP 5 billion (USD 100.5 million).

More than a simple investment, this bid reflects the company’s desire to exert operational control and integrate Delta into its broader regional insurance group—achieving economies of scale, accelerating product innovation, and increasing market penetration in Egypt.

Egypt Kuwait Holding Supports the Wafa Assurance Deal

A critical boost to Wafa Assurance’s bid comes from Egypt Kuwait Holding Company (EKH), the majority shareholder in Delta Insurance. EKH, which holds 63.39% of the company, has agreed to sell its full stake to the Moroccan insurer.

This endorsement not only gives the company a strong foothold but also positions it to meet and exceed the minimum 51% ownership threshold required for effective control and post-acquisition integration.

Regulatory Approvals Required for Wafa Assurance Transaction

Although the bid is in motion and has gained shareholder support, the proposed acquisition still requires regulatory clearance from both Egyptian and Moroccan authorities. The FRA in Egypt and Morocco’s financial regulators will evaluate the deal’s compliance with antitrust laws, financial regulations, and legal frameworks before granting final approval.

These due diligence processes are standard in international mergers and acquisitions within the financial services industry. Assuming approvals are granted, the deal would mark a pivotal milestone in the company’s regional growth strategy.

Wafa Assurance Expands Its Egyptian Market Presence

Wafa Assurance already maintains a presence in Egypt through its subsidiary, Wafa Life Insurance Egypt. However, the acquisition of Delta Insurance represents a transition from organic growth to strategic consolidation.

By acquiring Delta, the company will gain access to an established customer base, a skilled workforce, extensive distribution channels, and regulatory experience in Egypt. Delta’s strong market positioning in both life and non-life insurance segments makes it a valuable addition to Wafa Assurance’s regional portfolio.

AXA Withdraws, Leaving Wafa Assurance as Sole Contender

Initially, Wafa Assurance was not alone in its interest to acquire Delta Insurance. French insurance group AXA had also shown strong intent, participating actively in the early bidding process. However, on May 26, 2025, AXA officially withdrew its offer, leaving the company as the primary and only remaining contender.

Though AXA did not specify a reason for its exit, industry observers suggest that Wafa Assurance’s strategic alignment and regional synergies with Delta may have given it the competitive edge. With AXA out of the picture, the path is now clearer for Wafa Assurance, pending regulatory greenlights.

Implications for North Africa’s Insurance Landscape

The acquisition bid by Wafa Assurance reflects broader trends in North Africa’s insurance sector. Insurers across the region are increasingly turning to cross-border expansion, aiming to diversify risk, optimize operations, and tap into underserved markets.

For Wafa Assurance, this transaction aligns with its vision of becoming a pan-African insurance leader. The move also sets a potential precedent for other regional insurers to pursue mergers or acquisitions, particularly as regulatory environments become more conducive to such transactions.

Conclusion: Wafa Assurance Leads the Way in Regional Growth

The proposed acquisition of Delta Insurance is a defining moment for the company as it seeks to solidify its leadership across Africa’s insurance markets. Backed by a compelling offer and strategic alignment with Delta’s operations, the Moroccan insurer is well-positioned for success.

If the deal proceeds as expected, it will not only elevate Wafa Assurance’s footprint in Egypt but also foster deeper market integration, innovation, and competition across the African insurance industry.