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Yaoundé - 27 November 2020 -
Insurance

Cameroon on the brink of finalizing the creation of a national reinsurance company

Cameroon on the brink of finalizing the creation of a national reinsurance company
  • Comments   -   Tuesday, 10 November 2020 17:25

"(Business in Cameroon) - Cameroon-Re " is the name chosen by national financial authorities for the new national reinsurance company of Cameroon.

According to our information, the said project has already reached the "critical stage of the legal constitution." Its shareholding pattern would be decided in the “next few days.” The capital of "Cameroon-Re" (set to reach a minimum of XAF15 billion) will be divided among local insurance and reinsurance companies (51%), a strategic partner (preferably a reinsurer-34%), the State of Cameroon (10%), and miscellaneous investors (5%).

"Private governance was chosen given the successful experiences and development prospects of this company, whose success will be based on the trust resulting from the quality of its partners and the competence of its managers," an authorized source says. For the time being, a fully paid-up capital structure is the preferred option to provide the company with adequate resources for an optimum launch of its operations.

The company will likely play a significant role in the retention of premiums, the enhancement of national insurance companies’ capacities, and the diversification of the insurance coverage offer. "The stated ambition for the project is to rapidly get a rating. Hence the participation of a strategic partner with established reference, allowing for strategic, technical, and financial support worthy of the quality required to meet the challenge of sustained development for the business," says a source involved in the matter.  

The source adds that the public authorities’ involvement through a symbolic presence (via its support and capital for the launch) is only aimed at guaranteeing the proper execution of the agreements contained in the legal act of transfer. This involvement will gradually decrease, we learn.

Sylvain Andzongo

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