Allianz Global Corporate & Specialty

Advisory for
brokers and
clients.
October 2012

Supporting Australian
investors in Africa.
www.agcs.allianz.com
October 2012

AGCS has invested in Africa

with the establishment of
a new company, Allianz
Global Corporate &
Specialty Africa Limited,
which provides the
optimum way to service our
clients locally by offering
them access to AGCSs
global capabilities.

Foreword - AGCS Pacific: your business

partner in Africa
Investment into Africa is booming as a result of its wealth
of natural resources. Many Australian companies are at
the forefront of this investment. In fact Africa accounts
for the largest amount of new and existing overseas
investment, by Australian companies, than any other
region of the world.

General Manager AGCS,

Holger Schaefer

At Allianz Global Corporate & Specialty (AGCS) we

are optimistic about the future of Africa in the long term.
While many countries have struggled with the aftermath
and challenges brought forward by the Global Financial
Crisis, Africa is considered a major growth area, which
is one of the reasons why AGCS has established a new
African footprint, complementary to the existing Allianz
network, bringing its corporate and specialty know how
to Africa.
Connected to a large network in Africa, AGCS Pacific is
in a unique position to support Australian companies
with investments and operations in Africa, through its
ability to issue admitted insurance paper in most African
countries1.

Regional Manager
Market Management
AGCS, Willem van Wyk

AGCSs global network, extensive experience in servicing

international insurance programs and our specialist
Allianz Risk Consulting services enables us to
1 In relation to Australian clients and risks, Allianz Global Corporate and
Specialty - Pacific issues Allianz Australia Insurance Limited ABN 15 000
122 850 insurance.

Allianz Australia Insurance Limited ABN 15 000 122 850

Copyright2012 Allianz Australia Limited ABN 21 000 006 226
Allianz Global Corporate and Specialty - Pacific

support our clients and work with them to deliver the

best solution to the management, control and transfer
of risks.
AGCS offers brokers and their clients greater access to a
wide range of products including, Marine Cargo, General
Aviation, Engineering and Financial Lines. We also offer
expert knowledge to assist our global customers in
understanding technical insurance matters and complex
exposures, while accommodating their ever-changing
business needs, expectations and compliance
requirements.
This communication has been prepared to raise
awareness of our capability to provide insurance
solutions in Africa and inform brokers of our appetite to
assist those companies, who have already invested in or
are looking to invest in Africa.
For all enquiries, please contact your local Allianz Global
Corporate & Specialty underwriter.
Holger Schaefer, General Manager &
Willem van Wyk, Regional Manager Market Management
Allianz Global Corporate & Specialty.

2050

2.4 billion people will

be living in Africa

2011

Africa experienced
5.9% growth.

Coming to Africa
Africa is set to become a solid growth industry. With booming invesment opportunities
and improved economic growth, Africa is one of the fastest growing economies in the
world. It is also expected to be a hub for many Australian businesses looking to expand
their networks into this developing market.
For most African countries, there has certainly been a
history of poor economic performance, political and civil
unrest and adverse trade policies.
However in the recent years, Africa has emerged with
a greater appetite to participate in world markets and
enhance its international competitiveness the much
needed impetus for economic stimulus.
Proving resilient during the Global Financial Crisis, African
economies, excluding South Africa, now account for
more than one third of the regions GDP. The rest of the
sub-Saharan Region experienced economic growth at
5.9% in 2011*. In fact, a number of Africa economies
have recorded impressive growth rates, with six African
economies being among the 10 fastest growing in the
world**.
This solid growth has been supported by a number
of factors including; significantly less civil conflict; the
generally favourable commodity price developments
benefiting Africas national resource sector; debt relief
provided to a number of African countries and well
considered policy choices and reforms by African
governments.
In addition to the economic and regulatory reforms,
there has been a considerable investment in human
development.

Africans are becoming wealthier and are spending

more*** and with a current population of approximately
1billion people**** (and a projected population growth of
2.4 billion by 2050) the labour market has experienced a
growth in skilled entrants.
Country

Population in M

GDP (EURO) /
Capita*

Ivory Coast

20.7

845

Cameroun

19.4

839

Senegal

12.5

723

Burkina

14

375

Mali

13.4

503

Togo

6.6

291

Benin

8.1

506

Ghana

24.3

473

Madagascar

20.2

322

Central Africa

4.5

328

Updated information on population and GDP (2010 and 2011).

*Source: IMF
** Source: FANAF

*Africa poised for fast growth in spite of volatile economy Africas Pulse World Bank 18 April, 2012
** Africas impressive growth, The Economist, 6 January 2011
*** Its time for Africa, Ernst and Youngs 2011 Africa Attractiveness Survey.
**** U.S Census Bureau World POPClock Projection http://www.census.gov/population/popclockworld.html

It is estimated that 220 Australian resource companies are

coordinating as many as 600 projects across 42 African
countries. Operators include industry heavyweights such
as BHP Billiton and Rio Tinto, junior explorers and a host of
mining service providers.
There are also 134 active Australian Projects in South
Africa, which accounts for the largest amount of new and
existing activity in any one country.

General Manager Holger

Schaefer with a senior
mining broker at a mining
site in Western Australia.

Foreign Direct Investment (FDI) has also played a critical

role in developing the African economies. According to
Ernst and Youngs 2011 Africa Attractiveness Survey, FDI
has provided a positive ripple effect for employment,
development of local suppliers, skills, technology and
knowledge transfer and economic diversification.

Australia Strengthens ties with Africa

Overall, economic performance in Africa has improved
steadily over the last five years and like Australia, Africa has
a wealth of natural resources.
For example, it has 60 per cent of the worlds uncultivated,
arable land, 12 per cent of the worlds petroleum and 30
per cent of the planets known mineral reserves. Africa
is also a key source for known reserves of platinum,
diamonds, cobalt, gold and bauxite.
As a result investment in Africa is booming. The flow of FDI
increased from $10 billion in 2000 to $62 billion in 2008.
This is significantly larger than the flow to China
if measured relative to GDP.

220 +

Australian companies
in Africa

134

Active Australian
projects in Africa.

The Australian Government has been seeking to

advance Australias level of engagement with Africa, as
demonstrated by the Joint Standing Committee on
Foreign Affairs, Defence and Trade (JSCFADT) Inquiry into
Australias Relationship with the Countries of Africa.
The mining sector has been engaged as a key entry point
into this policy and receives support for the annual Africa
Down-under Conference and the annual Mining Indaba
Conference held in Australia.
As a result of such engagement, Australias trade with
Africa has grown steadily over the last decade at an annual
average rate of 6.1 per cent.

In addition to this there are a significant number of

Australian and Australian-based service companies
provide accounting, technical, legal, logistics and other
services to these companies.
While there are a number of challenges facing those who
seek to invest in Africa, the opportunities are equally vast.
Many companies and investors believe commodity prices
and returns will stay high enough, in the medium to long
term, to justify the risks.
According to Ernst and Youngs African Attractiveness
Survey, released in May 2012, there are many reasons why;
A 153% growth in new projects.
Intra-African investment has grown exponentially
increasing from 27 in 2003 to 145 in 2011.
African GDP will remain robust with an expected
growth of between four to five per cent in the next
decade.
Although investing in Africa may have challenges, risk can
be managed, and the rewards can be great.
With many Australian companies showing a strong
appetite for investments in Africa, AGCS is committed in
growing an integrated African presence and capacity to
support Australian companies investing in and across the
continent with tailored insurance solutions.

The footprint of Allianz in Africa

With links to our counterparts in Allianz Africa, AGCS can
deliver comprehensive International Insurance Programs
in nearly 30 African countries.
Allianz Africa has been operating in Africa since the early
20th Century. This long established presence enables
Allianz Africa to make the most of both its local expertise
and the strength and stability of a leading international
insurance and financial services provider.

With significant and growing interests in Africas resource

sector, Australian companies have an estimated current
and prospective investment of more than US$20 billion.

With its 15 subsidiaries in West Africa, Central Africa and

Madagascar, Allianz Africa offers a comprehensive range
of insurance and reinsurance solutions for both private
and corporate customers in the following offerings:

Australias mineral and resources companies have more

projects in Africa than in any other region of the world,
covering all types of mining projects from exploration to
smelters and all the major minerals.

Property Casualty / Corporate Liability.

Construction and Engineering All Risks.
Cargo / Aviation.
Employee pension plans and life and health solutions.

AGCS and Allianz Africa

the gateway into Africa

AGCS supporting Australian business in Africa

Few, if any, insurance companies are able to match AGCSs
ability to offer Australian companies, investing in Africa, a
harmonised global approach to risk management and risk
transfer.
AGCS is the Allianz centre of expertise for multinational
companies, large corporate and specialty risks. With a
worldwide network in more than 150 countries, we are
one of the very few global insurers with an exclusive focus
on the needs of large corporate and specialty clients.

The well balanced portfolio and product mix of AGCS

closely mirrors that of our global network, with a strong
emphasis on Liability, Marine, Financial Lines, Engineering
and Aviation.

Through our International Insurance Program (IIP) AGCS

can offer clients a bespoke, centrally tailored global
program, with customised terms and conditions, while
taking into account local specifics, client exposures and
remaining locally compliant with local regulation and
fiscal rules.

With a specific risk appetite for Africa, we can provide

Australian companies with expert advice in tailoring
insurance solutions to meet their specific needs.
Companies must be Australian owned otherwise we can
refer customers to our counterparts in other relevant
countries around the world.

With nearly 10,000 corporate client policies under

management, AGCS demonstrates proven experience
in developing complex and technically demanding risk
management solutions across a wide range of industries.
In the Pacific region, we offer insurance solutions to
approximately 60 per cent of the BRW top 100 companies.

Conclusion

AGCS offers tailored African specific

insurance
Through our robust Allianz/AGCS network and corporate
partners, AGCS Pacific is able to provide admitted

insurance paper in almost every African country. Our

network through the region validates our responsiveness
to customer needs and augmenting the business
relationships on the ground, which is why we have put
together a service package to assist those Australian
companies in Africa, specifically geared to the mining
industry.

Due to the commodities boom, the African mining

industry has demonstrated exceptional economic
performance and growth. With many Australian
companies dominating the Industry, Allianz Global
Corporate & Specialty can help those companies and
others, looking to enter the market, manage risk from a
broad perspective across numerous specialty classes.
For all inquiries, please contact your local Allianz Global
Corporate & Specialty underwriter.

Clients
and
brokers.

AGCS
Pacific.

Allianz Global Corporate & Specialty Pacific uses its network in Africa to
better support Australian companies. The network includes:
Allianz Global Corporate & Specialty
South Africa
Allianz Burkina
Allianz Senegal
Allianz Ivory Coast
Allianz Ghana
Allianz Togo
Allianz Benin
Allianz Equatorial Guniea

Allianz Gabon
Allianz Congo
Allianz Madagascar
Allianz Cameroun
Allianz Central Africa
Allianz Egypt
Allianz Chad
Allianz Niger
Allianz Mali

Tapping into the robust

Allianz / AGCS network
and corporate partners,
AGCS Pacific can provide
insurance solutions in
almost every African
country.

Plus Corporate Partners in almost every African country.

Mining operation in Africa.

AGCS Risk Appetite

Allianz Global Corporate & Speciality (AGCS) provides
dedicated expertise for large-scale projects and specialised
risks. With more than 1,400 international insurance
programs incorporating nearly 10,000 corporate client
policies, the Global Corporate & Speciality team brings
brokers and their clients proven experience in developing
complex and technically demanding risk management

Lines of
business

Liability

Marine

Financial
Lines

solutions across a wide range of industries. AGCS is one of

the few specialist corporate insurers with a genuine global
market presence and can provide single carrier insurance
solutions across the whole spectrum of corporate and
specialty risks. For clients, the integrated global structure
and underwriting coordination ensures more sustainable,
consistent and reliable outcomes.

General overview of corporate capabiltities

With a specialist team offering decades of experience across a

wide range of international industry sectors, AGCS offers extensive
coverage for a wide range of large scale industries including
pharmaceutical, construction, power utilities and automotive
manufacturers. AGCSs claims team includes specialists in longtail, third-party claims, with a combination of industry and legal
qualifications..
AGCS provides comprehensive technical advice and cover for large
scale global shipping activities, including tailored international cargo
programs. AGCS can arrange compliant global programmes with
admitted covers in foreign countries. Clients benefit from AGCSs
significant project cargo and delayed start-up (DSU) capabilities.
Tailored solutions include stock style covers and cover for offshore
static exposures, together with insurance for hulls and marine-related
liabilities.
AGCS covers large-scale specialist risks, including cover for
prospectuses and Initial Public Offerings. Clients range from midsized enterprises to the largest multinationals, serviced through
global underwriting centres in Europe, the UK, Singapore and
Australia. AGCSs expert underwriting teams have a wide range
of specialist expertise, including law, forensic accounting, risk
management, and corporate governance. Coverage includes
professional indemnity, directors and officers insurance, commercial
crime, employment practices liability, prospectus liability, investment
management and pension trustee liability.

Preferred coverage in
Africa

Project Cargo/DSU
Ocean Cargo
Inland Marine
IIP Programs

Directors & Officers

Liability
Prospectus Liability
Professional Indemnity
Specific Project PI

Engineering

Aviation

AGCS has the experience and technical expertise to underwrite

the largest and most complex engineering risks. Offering a unique
combination of large underwriting capacity AGCS can cater
for the biggest projects or companies while offering specialist
technical insight from our integrated underwriting, claims and risk
consulting teams. Preferred risk sectors include; Power & Utilities,
Transportation, Heavy Industries, Construction / IDI: Buildings and
CAR: Heavy Civils.

Our technical expertise and decades of aviation experience underpin

solutions covering a full range of aviation risks from aircraft hulls
and spares, to crew personal accident insurance and ground handlers
liability cover. AGCS also offers world-wide coverage for global
operators and large institutional clients, including specialised risks.

Public Liability,
preference for primary
business.
Appetite in the mining
sector limited to
dry, surface mine
development and
infrastructure.

Surface Open Cut

mine development &
processing plants and
subsequent operational
risks.
Hard rock & base metal
mine development &
processing plants
Underground mine
development works
that does not involve
operational testing
with ore extraction
activities.

Fixed Wing
Airports

Key Contacts
General Manager
Holger Schaefer
(02) 8258 5004
holger.schaefer@allianz.
com.au

Financial Lines
Bill Hassos
(02) 8258 5496
bill.hassos@allianz.com.au

Market Management
Willem Van Wyk
(02) 8258 5032
willem.vanwyk@allianz.com.
au

Liability
Michael Sealy
(02) 9390 6137
michael.sealy@allianz.com.
au

Aviation
Michael Dalton
(03) 9224 3043
michael.dalton@allianz.com.
au

Property
Graham Silton
(02) 8258 5209
graham.silton@allianz.com.
au

Risk Consulting
Iain Ritchie
(02) 9390 6940
iain.ritchie@allianz.com.au

Engineering
Ronan Gallagher
(02) 9390 6592
ronan.gallagher@allianz.
com.au

Marine
Ron Johnson
(03) 6332 3184
ron.johnson@allianz.com.au

Energy
Andrew Seeley
(03) 9224 3860
andrew.seeley@allianz.com.
au

New Zealand
David Sutcliffe
(09) 354 2946
david.sutcliffe@allianz.co.nz

Please see over for Regional Contacts.

AGCS directory and

regional teams
AGCS Directory and regional teams
Pacific

Energy

Andrew Seeley

+61 3 9224 3860 / andrew.seeley@allianz.com.au

Marine

Ron Johnson

+61 3 9224 3184 / ron.johnson@allianz.com.au

Liability

Doug Anderson

+61 3 9224 3897 / doug.anderson@allianz.com.au

Property

Andrew Seeley

+61 3 9224 3860 / andrew.seeley@allianz.com.au

Engineering

Ronan Gallagher

+61 2 9390 6592 / ronan.gallagher@allianz.com.au

Financial Lines

Neil Bowdrey

+61 8 9422 8478 / neil.bowdrey@allianz.com.au

Jack Chia

+61 8 9422 8479 / jack.chia@allianz.com.au

Chris Rose

+61 3 9224 3044 / christopher.rose@allianz.com.au

Liability

Peter McPherson

+61 2 9390 6964 /peter.mcpherson@allianz.com.au

Property

David Meredith

+61 2 9390 6297 / david.meredith@allianz.com.au

Engineering

Markus Klein

+61 2 9390 6888 /markus.klein@allianz.com.au

Aviation

Tom Laine

+61 3 9224 3068 / tom.laine@allianz.com.au

Financial Lines

Bill Hassos

+61 2 8258 5496 / bill.hassos@allianz.com.a

Liability

Doug Anderson

+61 3 9224 3897 / doug.anderson@allianz.com.au

Property

Andrew Seeley

+61 3 9224 3860 / andrew.seeley@allianz.com.au

Property

Matthew Hart

+61 2 8258 5739 /matthew.hart@allianz.com.au

Financial Lines

Michael Eastmure

+61 3 9224 3811 / michael.eastmure@allianz.com.au

Aviation

Tom Laine

+61 3 9224 3068 / tom.laine@allianz.com.au

Engineering

Ronan Gallagher

+61 2 9390 6592 / ronan.gallagher@allianz.com.au

Liability

Doug Anderson

+61 3 9224 3897 / doug.anderson@allianz.com.au

Property

Andrew Seeley

+61 3 9224 3860 / andrew.seeley@allianz.com.au

Engineering

Roger Errington

+61 2 9390 6310 / roger.errington@allianz.com.au

Financial Lines

Michael Eastmure

+61 3 9224 3811 / michael.eastmure@allianz.com.au

Aviation

Michael Dalton

+61 3 9224 3043 / michael.dalton@allianz.com.au

Perth

Aviation
Brisbane

Adelaide

Melbourne

Disclaimer: 2012 Allianz Global Corporate & Specialty AG. All rights reserved. The material contained in this publication
is designed to provide general information only and was believed to be correct at the time of publication. Allianz Global
Corporate & Specialty assumes no obligation to update any information contained herein. The descriptions of coverage are
abbreviated and are subject to the terms, conditions and exclusions of the actual policy. For full coverage details, please refer
to the actual policy forms.
Allianz Global Corporate & Specialty consists of various legal companies operating under the Allianz Global Corporate &
Specialty brand, namely Allianz Global Corporate & Specialty AG, Allianz Global Corporate & Specialty (France), Allianz Global
Corporate & Specialty North America (legal name Allianz Global Risks US Insurance Company) and AGCS Marine Insurance
Company.