African Reinsurance Corporation (Africa Re), Africa’s leading reinsurer, has completed a plan to increase its capital to US$500 million, its Egyptian regional representative Mohammed Maait announced Wednesday.
The existing shareholders, including states, development finance institutions, and insurance and reinsurance companies have contributed to the Africa Re’s capital increase, except for its regional shareholder, Libya who is facing difficult times to subscribe and pay, Maait added.
In 2015, Africa Re signed two agreements with two leading global investors, Canada-based Fairfax Financial holdings and France-based AXA Insurance which paid $61 million to become a new shareholder of Africa Re. Fairfax acquired a 7.15 percent stake and a seat on the Board of Africa Re on March 25, 2015 while the Reinsurance giant also signed investment deal of $61m with AXA for 7.15 percent equity on February 20, 2015.
AXA and Fairfax’s acquisition deal will support Africa Re’s upcoming business results, Maait stated.
The African Reinsurance Corporation (Africa Re) was established on 24 February, 1976 following a recommendation of the African Development Bank (AfDB), with the aim of reducing the outflow of foreign exchange from the continent by retaining a substantial proportion of the reinsurance premiums generated therein.
Africa Re’s current shareholding comprises 41 member countries of the African Union, the African Development Bank (AfDB), 107 African insurance and reinsurance companies, Proparco, a branch of the Agence Française De Development, IRB-Brasil Re, a leading Brazilian reinsurer, Fairfax, and AXA.