By Ebere Nwoji
Africa Reinsurance Corporation has said that among three reinsurance firms operating in Nigeria, it controls about 20 percent of reinsurance market share in Nigeria while European and other oversea reinsurers control about 65 percent of the market.
According to Africa Re, the remaining 15 percent is shared by other Nigerian local reinsurers namely Continental Re, and Nigerian Re.
The Corporation, also said in 2016, businesses from Nigeria, represented about 13 percent of its turnover.
“Nigeria, where Africa Re is headquartered since 1976, represents an important market for the Corporation as it represents about 13percent of its total turnover in 2016.
It said the predominance of foreign reinsurers, mostly European, in the Nigerian reinsurance market has to do with the total low underwriting capacity (and shareholders’ funds) compared to the size of total risk exposures”, he said.
The corporation’s management said standing with Nigerian insurers, it has developed diverse partnerships to support the market development, for example in the mitigation of the forex risk, adding that unlike the foreign reinsurers, Africa Re, accepts payment of reinsurance premiums in Nigerian bank accounts and in the national currency (Naira).
It further said to support Nigerian economy, Africa Re has also invested over $90 million in various Nigerian companies and indirectly created over 570 jobs.
It added that besides its involvement in the development of the insurance industry through in-house and market insurance trainings, Africa Re is also working with the National Insurance Commission of Nigeria to enhance public awareness of insurance products in order to boost insurance penetration in the country.
“Through its Corporate Social Responsibility (CSR) Trust Fund, Africa Re’s shareholders have sponsored in the last three years up to US$ 1,252,000 in various CSR initiatives”, the firm added.
Africa Re also said over the years, it has been involved in capacity building in the African insurance industry with the view of developing the market.
According to the corporation, in 2015, it invested $380,000 to train over 1300 insurance professionals in over 100 companies, instituted performance awards aimed at enhancing corporate governance, innovation and operational best standards for the insurance industry from which many African insurance professionals have benefited tremendously.
“Admittedly, the Corporation’s enviable financial and operational success has enabled it to take on certain obligations to the benefit of its various stakeholders including the insurance industry, shareholders, member states and even the communities in which it operates. These obligations have been discharged most credibly and faithfully in line with the ideals of the Corporation’s developmental mission”.