Africa’s reinsurance giant, Africa Reinsurance Corporation (Africa Re) says it is committed to using its strength and resources to develop the African insurance market particularly in the area of market penetration.
The company, which recently flagged off an awareness campaign on motor insurance as part of its Corporate Social Responsibility (CSR) for Nigeria where it operates its head office said all stakeholders must embrace the project to achieve expected result.
Africa Re therefore has called on the Federal government of Nigeria, the National Insurance Commission (NAICOM) and insurance operators in Nigeria, to join hands together to increase insurance penetration in the country.
Hassan Boubrik, chairman of the board of directors of Africa Re, said at the closing dinner of the 141st board meeting of the Institution held in Abuja that efforts to increase the penetration of insurance in the country must be a collective one.
Boubrik, who appreciated the contribution of the stakeholder of the reinsurer to the growth of Africa Re including African development bank, 41 African states, 108 insurance and reinsurance companies, among the shareholders of the group, called for unity to move the industry forward.
He said, “We call on all especially insurance companies, insurance supervisors, and government bodies to work tirelessly to increase the insurance penetration in our population, and to contribute to the provision of risk management solutions to our communities and countries.”
As a composite company, we providing lifetime covers in over 60 countries spread across Africa, Brazil, Asia and the Middle-east and is rated A by Standard & Poors, an international rating agency.
“Africa Re is a major industry in Africa in market share. We are also not just in Africa and the Middle-East in terms of size of premium income estimated at $700 million – one of our own major achievement in our financial rating by Standard & Poor.”
Cornellie Karekezi, GMD of African Re, explained why the reinsurers decided to take its board meeting to Abuja this year, “We had our board meetings in Lagos 38 years ago. And, it is normally a unique opportunity for board directors to interact with staffs that are in Lagos and to interact with the insurance community of Nigeria”.
Though, he admitted that insurance market is in Lagos, elucidating that the corporation aimed to achieve two-prong targets with the Abuja meeting, “We came to Abuja mainly for two reasons.
First, to visit top authorities of Nigeria to discuss some matters of common interest, especially the projects which we intend to do in this country.”
“Two projects are on our minds at the moment. Of course, we are requesting space for building residential properties. We have been doing a lot here, and this is our home. We want to locate our head office to Abuja. It’s long due. So, we will come here God’s willing, in the next two to three years, we’ll build our head office, and that is one of the major relocations we have.”
Speaking on the impact of recession on insurance business especially as it has to do with Africa Re, the reinsurer’s deputy managing director, Ken Aghoghovbia, said the impact was insignificant to the corporation’s overall business
“Yes. The recession has impacted our operations. In Nigeria, there is a depreciation of the currency because we report in the US dollar. The impact affects not only on liquidity, our balance sheet, but the good news is that even in South Africa, the Rand has steadied. There is marginal appreciation. I think 10.6 percent. In Kenya, the shillings have been stable. In the CFA zone, the currency which is tied to Euro has kind of appreciated against the US dollar.”
“And because of African Re’s diversification, our operations have been relatively stable. There is an impact, no doubt, but it is not as bad as it would have been, it is the same story across the board, Aghoghovbia added.
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