Kenya Reinsurance buys Sh87m stake in African Trade Insurance Agency

Kenya Reinsurance has bought 10 shares worth Sh87.5 million in African Trade Insurance Agency, as the two roll out plans to play bigger roles in insuring investments on the continent.

Speaking during the signing ceremony at Kenya Re Plaza, ATI chief executive officer George Otieno said the two were focused on trade credit financing.

The firm has increased business, insuring against terrorism and political risks in recent years.

“ATI’s vision is to transform Africa into a prime trade and investment destination. With the Kenya Re partnership, the underwriting capacity has grown, making ATI better armed to provide investment and trade insurance to the multi-billion projects expected in Africa,” he said.

He added that the government had approved 59 projects that would be undertaken through public-private partnerships, noting that they intended to provide insurance cover to some of them.

BUYING SHARES

Mr Otieno said several existing and new investors had expressed interest in buying shares since the firm became profitable two years ago.

Kenya Re managing director Jadiah Mwarania said the partnership with ATI would give the firm credibility in East Africa and the continent, enabling it to tap potential markets.

“As a shareholder, Kenya Re should expect to directly benefit from ATI through dividends, as well as sharing risks in the region,” he said.

Mr Otieno said AKI would soon sign a partnership with the Economic Community of West African States (Ecowas), further boosting mutual business.

“We expect some 15 countries in Ecowas to join in the next three to five years. We have already signed Benin and expect the others to join in a much shorter time. This will help ATI turn towards being a fully-fledged pan-African institution, rather than a Comesa one,” he said.