AfricaRe shareholders equity hit $800m, premium income $700m

The Chairman of the Africa Reinsurance Corporation (AfricaRe), an insurer to insurance firms, Hassan Boubrik, said that Africa is now a giant in reinsurance practice as the Corporation’s shareholders’ equity has grown to $800 million as against the initial $500 million at the inception in 1976.

He maintained that AfricaRe has been recording steady growth in premium income, profitability, assets, solvency, and shareholders’ funds over the years, and further cited that to date; it has estimated premium income of over $700 million. He spoke while addressing AfricanRe board members shortly after the board’s 141st meeting held in Abuja.

The African Reinsurance Corporation was established in February 24, 1976 in Yaounde, Cameroon, with an initial 36 members of the then Organisation of African Unity (OAU), and African Development Bank (AfDB). It was aimed at curtailing foreign exchange outflows from the continent by retaining the substantial part of reinsurance premiums and providing reinsurance expertise to underwriters.

Currently, it has 41 member countries of the African Union, the AfDB, 108 African insurance and reinsurance companies, among others with a paid up capital of $294 million.

Boubrik, who noted that today, Africa has become a giant in reinsurance industry, recalled that prior to the establishment of the AfricanRe, reinsurance was an exclusive expertise of the Europeans and Americans while the role of the Africans was almost nil in 1976.

He said: “These achievements, or to be more precise, the success story of the African Reinsurance Corporation are not presented to you to blow our trumpets, rather, they are presented to you to let you know that your respective contributions since inception has yielded results beyond expectation.”

Earlier, while fielding questions from journalists, the Group Managing Director of the AfricaRe, Corneille Karekezi, explained that the Board meeting was prompted by the need to meet with the top authorities in Nigeria, and discuss some matters of common interest, especially the project they intend to embark on in Nigeria.

He disclosed that apart from investing in Lagos where AfricaRe is currently constructing residential buildings, they also intend to relocate the Headquarters from Lagos to Abuja within the next three years after 40 years of its existence.

Further, he said the Corporation has a project they intend to implement in support of the Nigerian formers for insurance protection against drought and other diseases, which would be implemented in partnership with insurance companies and foreign partners.

He said: “But you can’t do agricultural insurance at a bigger scope if you are not with the government because the government has two roles. One is to allow you aggregate the farmers under cooperatives and the consolidation of lands. Secondly, is to support farmers to pay insurance premium through granting them subsidies.”