Africa Re has attributed much of its success throughout Nigeria and the African continent to developing diverse partnerships that support re/insurance market growth.
The reinsurer said its unique ventures – such as the mitigation of forex risk through accepting payment of reinsurance premiums in Nigerian bank accounts and in the national currency (Naira) – have given the firm a competitive edge over foreign reinsurers.
Africa Re collaborates with the Nigerian National Insurance Commission to grow public awareness of insurance risks and products through in-house and market insurance trainings; in 2015 the firm reported investing $380,000 to promote primary market growth by training over 1300 insurance professionals.
In addition, the firm encourages best practice in insurer’s corporate governance, innovation, and operational standards through performance awards ceremonies.
These diverse initiatives and partnerships have contributed to success in the reinsurer’s growth as the develop primary market capacity develops with increased insurance penetration in the Nigeria, according to Africa Re.
With the help of these partnerships, which brought in 13% of the reinsurer’s total 2016 turnover, Nigeria has seen continued market growth; “In Nigeria, the biggest market in the West African region, Africa Re enjoys about 20% of the reinsurance market share.
“Other Nigerian local reinsurers write about 15% market share, while foreign reinsurers have on the average about 65% market share. The predominance of foreign reinsurers, mostly European, in the Nigerian reinsurance market has to do with the total low underwriting capacity (and shareholders’ funds) compared to the size of total risk exposures,” said Africa Re.
Over the last three years, Africa Re shareholders have sponsored up to $1,252,000 through for the firm’s Corporate Social Responsibility (CSR) Trust Fund initiatives.
Africa Re commented on the success of its training programmes, partnerships, and CSR Trust Fund; “the Corporation enjoys a large acceptance across the continent and this has allowed it to concentrate up to 28% of the total African shareholders’ funds in 2015, an indication of its weight in the total African underwriting capacity.
“Without that capacity, given the relatively undercapitalization of African reinsurers (average solvency of 85% in 2015), more reinsurance premiums will leave the continent to overseas reinsurers.”