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AXA, the French insurance giant, has launched a joint venture with Chaucer, a Lloyd’s of London specialty insurance group, to target the rapidly expanding market for specialty insurance in Africa.

According to a statement released on Tuesday, AXA said the new joint venture called, AXA Africa Specialty Risks, will be dedicated to covering specialty insurance lines in areas such as political risk, energy, and infrastructure.

Specialty insurance is purchased for items that are special or unique. It provides protection for items that are otherwise not protected under other types of insurance policies like home insurance, motor insurance, fire insurance, life insurance, health insurance etc. Items such as jewelry, works of art, animals, and special events could be covered under a specialty insurance policy. Lloyd's Chaucer is a renowned specialty insurance carrier.

AXA said Chaucer brings strategic alignment towards specialty insurance, the strong underwriting expertise of Lloyd's, extensive partnership management experience, and established relationships with corporate clients, banks and business producers. On its part, AXA brings to the partnership marketing capabilities and a strong distribution network, with its presence in eight African countries: Nigeria, Algeria, Cameroon, Egypt, Gabon, Ivory Coast, Morocco, and Senegal.

“Partnering with Chaucer and the Lloyd´s market gives us a great opportunity to develop the growing and profitable specialty lines business in Africa by setting up a pan-African specialty insurance entity that will complement our African footprint and our presence in commercial lines,” said Denis Duverne, AXA’s Deputy Chief Executive Officer and Chairman designate.

With this venture with Chaucer, AXA continues its rapid expansion across Africa’s insurance sector. In 2014, AXA acquired 77 percent of Nigeria’s Mansard Insurance – now renamed AXA Mansard – for $246 million.

Last year, AXA acquired 18.6 percent stake in Eranove, a leading West African utility company based in France. AXA also signed an agreement with the International Finance Corporation to develop parametric insurance and acquired 7.15 percent stake in African Reinsurance Corporation (Africa Re), the leading reinsurance company in Africa. In Egypt, AXA acquired Commercial International Life Insurance Company, a leading life insurance company.

In February this year, AXA invested $85 million in Africa Internet Group, the parent company of Jumia, to become the exclusive provider of insurance products and services through the online retailer.