(Ecofin Agency) - Canadian insurer Fairfax Financial Holdings announced in a statement published on July 6, the acquisition of Zurich Insurance’s South African subsidiary.

Fairfax without disclosed the amount of the deal said it was still to receive the necessary regulatory approvals. However, it should be sealed by the fourth quarter of 2016.

The Toronto-based company wants through this acquisition to further expand its footprint in Africa. In April 2015, it acquired a 7.15% stake in African Reinsurance Corporation (Africa re), Africa’s leading reinsurer by turnover.

“We are happy to see ZICSA join us. It is a high-quality and well-known regional business, with an outstanding management team led by Edwyn O’Neill,” said Fairfax CEO, Prem Watsa, in the statement.

“Africa is a continent that represents a long-term growth opportunity for Fairfax, but where we have traditionally done little primary commercial insurance business,” he added.

Zurich Insurance earlier this year, in February, initiated a process to sell its South African and Moroccan non-life businesses in the framework of a strategic review of assets under its unprofitable insurance pole.

Founded in 1965, Zurich Insurance Company South Africa Ltd (ZICSA) runs life and non-life insurance businesses in South Africa and Botswana. It also has “strategic investments” in Swaziland and Mauritius and employs 800 people.