Africa Re

The idea of developing a local insurance and reinsurance market in developing countries was born in the early 1970s within international institutions.[5] Only economically mature countries had companies operating in this sector at the time. In Africa, the obstacles facing the project were numerous, given the continent's lack of human and material resources and its political, economic, cultural and linguistic disparities.[6] It was in this context that Africa Re was established in Yaoundé (Cameroon) on 24 February 1976. Its authorized capital of US$15 million was then shared between the African Development Bank (ADB) and 36 member states of the Organization of African Unity (OAU).[4]

The ambition is to curb the outflow of foreign currency from the continent, mobilize local capital, create a reinsurance market and support African economic development.[6] The company started its activities in Accra (Ghana) [7] before moving, a few months later, to Lagos (Nigeria). In 1980, Africa Re opened its first regional office in Morocco.[8] Kenya (1982) and Côte d'Ivoire (1987)[9] then followed.

The deteriorating socio-economic and political context of the 1980s and 1990s affected business activity on the continent. The structural and monetary adjustment plans imposed by the International Monetary Fund (IMF) threatened companies and weakened the insurance and reinsurance sector.

In response to this situation, the Board of Directors decided in 1990 to increase the capital to US$30 million and to open it to African and foreign companies. Between 1982 and 1993, five other African states, convinced by the project, joined the ranks of State shareholders, whose number went from 36 to 41.[10]

The advent of democracy in South Africa and the country's integration into the OAU in 1994[11] marked a fresh beginning for Africa Re. The establishment of a contact office in Johannesburg in 1995 gave the company access to the most important African insurance market, which remains its main source of business to this day.[5]

In order to provide the financial resources necessary for the company's expansion, a second capital increase was decided in 1997. The capital increased from 30 to US$50 million. A contact office (transformed into a regional office in 2003) was then opened in 1997 in Mauritius.[12]

The “Africa Re House”, the company's new headquarters, was built in 2000 in the commercial district known as Victoria Island in Lagos.[7] New premises were also built in Abidjan in 2001, in Nairobi in 2003 and in Casablanca[13] in 2005.

The capital was doubled in 2001, reaching US$100 million, to finance the company's development on the continent. To cover Northeast Africa, the Cairo (Egypt) office was created in 2001.[14] This became a regional office in 2004 [7] while the Johannesburg office was established as a subsidiary[7] in the same year.

Between 2004 and 2005, four financial institutions acquired a 20% stake in Africa Re; however, it was only in 2010 that the reinsurer reached its pan-African dimension. The threefold increase in capital to US$300 million allowed Africa Re to complete its coverage of the continent. In 2010, a subsidiary was created in Cairo to support the emerging development of Islamic reinsurance, the new company, Africa Retakaful,[15] operating mainly in the MENA region. In 2011, a local office was set up [16] in Ethiopia in order to strengthen the company's presence in the strategic region of East Africa.

Segmentation of risks and their dispersion in space are driving the international development of reinsurers. Through its presence in the African market, Africa Re has attracted foreign companies that wanted to gain a foothold in Africa.[17]

This is how IRB Brasil Re became a shareholder in 2012.[18] This alliance also gave Africa Re operator status in Brazil and the opportunity to expand its operations in Latin America.[18][19][20]

The year 2015 marked the entry of two new shareholders, Axa[21] and Fairfax Financial Holdings [22] with a stake of 7.15% each.

In 2018, Allianz acquired IRB Brasil's 8% stake in Africa Re.[23]

In 2014, Africa Re established a fund to finance corporate social responsibility (CSR) projects.[34] This initiative follows a November 2013 board of directors' decision that allocated up to 2% of the annual net profit to CSR projects in the 41 member States.

The Africa Re Foundation was created on 19 January 2018 to steer this fund, which was initially managed internally. The new entity, based in Mauritius and operational since January 2019, is responsible for managing the fund and ensuring the implementation of the various CSR projects.