Thursday April 24 2014

Reinsurer eyes acquisitions in East Africa

By Monitor Correspondent

Nairobi- Pan-African reinsurance company, Continental Reinsurance, also known as Continental Re, is considering acquisitions in East Africa as it eyes a larger share of the African reinsurance market through regional expansion, establishing new regional subsidiaries, and acquisitions.
Reinsurance is insurance that is purchased by an insurance company from one or more other insurance companies as a means of risk management.

Continental Re already has a presence in Nigeria, Kenya, Cameroon and Cote d’Ivoire and writes business across 43 African countries.

Additional offices will be opened in Tunisia this month and Botswana in May, the group managing director and Chief executive officer, Dr Olufemi Oyetunji has said.
“We believe that Africa must have strong and large insurance institutions so that we can keep African premiums in Africa,” he said.

He added: “We see opportunities in organic growth and we see opportunities in acquisitions. As I speak, we have entered into discussions with reinsurance companies in West Africa, East Africa and in Southern Africa.”

Raising capital
As part of acquisition and regional expansion, the company plans to raise additional capital, a process which has already been approved by the board of directors and is ongoing. The company has entered into special co-operative agreement with SCR Morocco and SCG Re Gabon, among other reinsurance companies.

Continental Re is the first African reinsurance company outside South Africa that has signed the Principles for Sustainable Insurance (PSI), under the United Nations Environmental Programme (UNEP).

The PSI provides a road map to develop and expand the innovative risk management and insurance solutions.