EFG Hermes and GB Auto announced, on Thursday, the completion of their 75% stake acquisition of Tokio Marine Egypt Family Takaful.

The deal, worth a total of EGP 84.75m, was conducted through EFG Hermes’ non-bank financial institution (NBFI) arm EFG Hermes Finance Holding and GB Auto’s NBFI arm GB Capital. The two arms will each hold a stake of 37.5% in Tokio Marine Group Egypt.

Tokio Marine Group is a world-renowned leader in insurance and reinsurance, with the largest general insurer in Japan set to own the remaining 25% stake in the company’s Egypt operations.

Tokio Marine Egypt Family Takaful offers individual and corporate clients a variety of insurance solutions. The acquisition considerably expands the scope and reach of EFG Hermes’ and GB Auto’s respective NBFI offerings.

At the same time, the acquisition provides a platform from which EFG Hermes and GB Auto can significantly increase their exposure to various market segments. The acquisition will be leveraged to complement the companies’ respective existing NBFI operations, through the introduction of innovative insurance products.

Egypt’s insurance industry remains significantly underpenetrated compared to regional and global peers.