African Reinsurance Corporation (Africa Re) inaugurated an office in Kinshasa, Democratic Republic of Congo (DRC), on October 9.

According to Africa Re Chairman Moustapha Coulibaly, the new office aims to support local insurance companies in covering major risks and to offer solutions tailored for strategic sectors such as mining, energy, infrastructure, and agriculture.

Coulibaly also emphasized Africa Re's commitment to assisting the Insurance Regulation and Control Authority (Arca) in modernizing the regulatory framework, which is crucial for strengthening the credibility and attractiveness of the Congolese insurance market.

The opening of this office will allow the pan-African reinsurer to work more closely with its local partners to improve the retention of premiums nationally. Losses related to placing premiums abroad and the non-collection of value-added tax (VAT) were estimated at approximately $1.5 billion in 2023, according to Arca.

In accordance with a November 29, 2019, circular from Arca, Congolese insurance companies were already obligated to cede at least 5% of their reinsurance treaties to Africa Re. Building on this relationship, Arca and Africa Re launched the Reinsurance Facility in March 2024, a collective mechanism allowing companies in the same market to pool their risks and strengthen their financial capacity against claims.

This mechanism aims to "provide the DRC with greater national reinsurance capacity and better control over insurance and reinsurance operations, particularly in the oil, gas, mining sectors, and against political violence risks." It also serves to limit the outsourcing of insurance for companies where at least 75% of the risks are located in the DRC, aligning with Arca’s requirements.

Established in 1976 by the African Union and the African Development Bank, Africa Re is a pan-African reinsurance institution dedicated to enhancing the sector's capacity across the continent. In 2024, the company reported $1.21 billion in gross written premiums, representing a 9.73% increase over 2023. Its network now includes 11 offices across Africa, the Middle East, Asia, and Latin America, comprising various subsidiaries and regional offices. In the DRC, Africa Re becomes the second reinsurance player in the market, following the entry of reinsurer Zep-Re.

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