Reports from African media suggest that Cameroon Re, a new national reinsurance company, is preparing to launch with FCFA 15 billion (USD 27.1 million) of capital.
Sources at Kapital Afrik informed the publication that the reinsurer is in the final stages of its formation, and is awaiting legal approvals.
The launch of a national reinsurer in Cameroon was under discussion as early as July 2019, after the government appointed consulting firm Finactu to assist in the creation.
Now, Kapital Afrik says that local re/insurers, government authorities and partners have reached an agreement on the make-up of the company.
Local insurance and reinsurance companies will own 51% of Cameroon Re’s capital, a strategic partner (preferably a reinsurer) will hold 34%, the State of Cameroon will hold 10%, and the remaining 5% will be held by other miscellaneous parties.
Several other African nations currently operate a state-backed reinsurance company, including Morocco, Tunisia, Kenya, Senegal and Nigeria.
Cameroon itself used to have operate the Caisse Nationale de Réassurance (CNR), but this reinsurance initiative was liquidated back in 2000.
