Continental Reinsurance Holdings Limited has launched a $156.1 million public offer to strengthen its capital base, expand underwriting capacity and support its pan-African growth strategy.

The offer, which closes on October 9, comprises $126.1 million from the sale of existing shares and $30 million in fresh capital for the Group, following approval of a revised timetable by the Botswana Stock Exchange.

The transaction also makes Continental Re the first reinsurer seeking a listing on the Botswana Stock Exchange.

The company said the fresh capital would support underwriting capacity, solvency, its Alternative Solutions business and investments in technology and operations across its African markets.

The capital raising comes against the backdrop of low insurance penetration across Africa despite rising exposure to climate, infrastructure, energy and other commercial risks.

Africa’s reinsurance market generated an estimated $6.3 billion in gross premiums in 2024, having expanded by 89 per cent between 2015 and 2024. Despite the growth, the continent accounted for only about 1.6 per cent of global reinsurance premiums.

Insurance penetration across Africa stood at about 2.8 per cent of GDP, compared with approximately 6.8 per cent globally.

Continental Re said the market gap provides opportunities to expand capacity for risks associated with infrastructure, energy, agriculture, aviation and marine activities.

The Group reported insurance revenue of BWP2.32 billion ($173.1 million) and gross written premium of BWP2.27 billion ($165.6 million). Profit before tax rose by more than 50 per cent year-on-year to BWP105.3 million ($9.7 million).

Its loss ratio stood at 33 per cent, while the combined ratio improved to 92 per cent from about 94 per cent in the preceding year.

The company has a B+ financial strength rating from AM Best with a stable outlook.

Shares are being offered at BWP1 each, with a minimum application of 200 shares.

The company said the capital raising would provide additional capacity to deepen its operations across African markets and participate in the continent’s growing insurance and reinsurance demand.