The African Development Bank (AfDB) entered the capital of the Joint Reinsurance Company of the Member States of the Inter-African Conference on Insurance Markets (CICA-RE) to the tune of 6.558 billion FCFA, i.e. 5.47% of the total shares .
The signing of an investment agreement between the two institutions took place on Thursday, June 09, 2022, in Abidjan in the presence of the Minister of Economy and Finance, Adama Coulibaly.
The AfDB will increase the underwriting capacity of CICA-RE
Expressing his gratitude to AfDB leaders, CICA-RE’s Managing Director, Diarrassouba Karim, said the bank’s entry will enable the company to increase its underwriting and custody capacities, improve its of equity to turnover, to strengthen its resilience to the occurrence of major claims, its governance framework with a probable effect on its financial rating and to strengthen support for Member States in their economic development.
He promised that his institution will make every effort to honor its commitments in this convention.
On behalf of the AfDB, the head of the capital markets development division, Attout Ahmed, welcomed this partnership which accompanies the expansion of CICA-RE in Africa.
Developing the insurance sector in Africa
“The proposed operation is part of the Bank’s strategic interventions aimed at increasing our contribution to the development of the reinsurance sector in Africa by strengthening strong African players, such as CICA-RE, capable of competing with international standards”, insisted Mr. Trump.
Minister Adama Coulibaly stressed that the entry of the ADB into the capital will strengthen the solvency of the company as well as its financial solidity. As such, he invited the CICA-RE to make the most of the said agreement for a mutually fruitful partnership.
As main challenges, Mr. Coulibaly urged the company’s officials to maintain it in a high level of performance by continuing to honor its commitments to deserve the trust of its partners and to strengthen its contribution to financing for the development of its States. members through greater promotion of insurance and reinsurance activities.
Also, he promised that Côte d’Ivoire, the first market in the space of the Inter-African Conference on Insurance Markets (CIMA), will continue to support CICA-RE for its development and anchoring.
CICA-RE is the third regional reinsurance company in which the AfDB has invested after Africa-RE and PTA Reinsurance (ZEP-RE).
With a capital of 60 billion FCFA and a turnover of 95 billion FCFA in 2021, the CICA-RE created by twelve member states of the CIMA, is committed to a permanent improvement of its governance, the strengthening of its systems control and consolidation of achievements.