Pan-African reinsurance group secures capacity in partnership with GIC and Peak Re

The newly launched pan-African focused reinsurance group Africa Specialty Risks (ASR) has partnered with GIC of India and Peak Re to secure additional multi-year binder capacity of up to $25 million per risk.

The additional capacity means the reinsurer can offer capacity across property, political risk, trade credit and energy.

ASR has also confirmed plans to increase its lines to include political violence and terrorism, liability, construction, and parametric covers for its clients. And it has established a fully licenced reinsurer in Mauritius to support its business across the continent.

The group is backed by Helios Investment Partners’ (Helios) fund IV, which supports the group via its extensive long-term reach across Africa, as well as its knowledge and experience in the reinsurer’s key markets.

Mikir Shah, ASR CEO, said: “We will support insureds during the economic downturn by providing adequate cover, and through proficient client service, we will look to form strong, long-term relationships. Securing additional capacity could not come at a more meaningful time for ASR. Following our launch mid-pandemic in September 2020, we have seen an industry-wide reduction in available capacity as traditional underwriters withdraw from emerging markets to focus on their more developed domestic markets.

“Securing multi-year capacity through our strong international partners is a testament to our robust business plan which will provide long-term security. At ASR we will focus on portfolio resilience which will form our core strength, and diversification to cater for a wide range of business lines cementing our long-term commitment to the African markets.”

ASR was launched by Helios in partnership with Shah, former CEO of AXA Africa Specialty Risks, and Bryan Howett, former CEO of Old Mutual’s pan-African reinsurance operations. Souleymane Ba, partner at Helios, said: “ASR has been established to supply specialist expertise and address the capacity gap present in Africa by providing customer-focused risk mitigation products. We are delighted that ASR has secured further risk capacity to support the African markets. Private equity has a long and successful track record of stepping up to fill unmet insurance capacity, allowing it to de-risk and support investment activity. We are very pleased to be backing ASR on its journey.”

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