Major African reinsurers strike deal for political risk & trade credit capacity

Pan-African re/insurer  Africa Specialty Risks has partnered with the African Reinsurance Corporation (Africa Re) for political risk and trade credit underwriting capacity.

The pair have entered into a partnership agreement on the provision of political risk and trade credit insurance (PRI & TC) through an underwriting authority agreement, which brings in $10 million multi-year capacity for risks situated in Africa and the Middle East.

ASR team will write, on behalf of Africa Re and other (re)insurance underwriting capacity providers, political risk and trade credit in accordance with the terms of the Binder Agreement.

The agreement enhances the combined ability of ASR and Africa Re to provide the much needed underwriting capacity in these lines to widen access to specialty risk mitigation covers by a wider array of corporates and investors, facilitating trade and inclusive growth in Africa and the Middle East.

ASR said its partnership with Africa Re reflects a shared ambition to deepen the Africa (re)insurance market, supporting the goals of the AfCFTA – the African Continental Free Trade Area.

Mikir Shah, CEO of Africa Specialty Risks, said: “Partnering with Africa Re is an exciting time for ASR as we continue to protect the continent from a myriad of risks and increase our footprint in Africa. This partnership will elevate the protection we are able to provide to international and local organisations. We look forward to working with Africa Re, and continuing our work in filling the insurance gap in Africa.”

Corneille Karekezi, Group CEO and MD of Africa Re, commented:

“The partnership with ASR complements our existing relationships and reflects our commitment to identifying solutions to industry challenges. The dearth of underwriting capacity to cover insurance against the prevalent political and trade credit risks in Africa is one of key impediments to attracting the much-needed investment for economic development in Africa”.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.