FBS Leverages Strong Institutional Investors to Impact African Insurance Market
Ebere Nwoji
FBS Reinsurance Nigeria Limited (FBS Re) said it is leveraging on the business and other strategic relationships of frontline insurance companies that are institutional shareholders to impact African insurance market.
The reinsurance firm said it came into existence to close the existing gap in reinsurance services across Africa and to combat capital flight in insurance and reinsurance businesses in Nigeria and across Africa.
The company stressed that over the years Nigerian and other African insurance industry players have been relying on foreign reinsurers, leading to the undesirable consequence of scarce foreign currencies being exported to pay for reinsurance services abroad.
The reinsurance-underwriting firm noted in a statement that African markets experienced foreign reinsurers withdrawing their capacities, especially, during any foreign currency liquidity crisis, which, unfortunately, is a perennial occurrence on the continent.
It said these foreign companies’ impromptu exits usually disrupt corporate planning efforts, erode much-needed stable reinsurance capacity, and increase the cost of business. Thus, the markets face capacity availability volatility to provide for growing industrial, Energy, Aviation, and Marine risks,” it pointed out.
It noted that it was this difficult scenario that compelled a group of Nigerian insurance and reinsurance professionals to establish FBS Re to reduce the capacity gaps and to conserve the economy’s scarce foreign exchange.
With this, FBS Re said it leverages the business and other strategic relationships of frontline insurance companies that are institutional shareholders, namely Leadway Assurance, Custodian and Allied Group, Standard Insurance Consultants, Scib Nigeria Limited, and YOA Re Brokers. The statement added that, FBS Re focuses on offering better services to close the gaps in Nigeria and Africa and aims to be a significant player in international reinsurance.
