Seychelles Reinsurance Company (Sey Re) is inviting prospective investors to provide an expression of interest to invest in the company.
Sey Re is incorporated in the Republic of Seychelles and is to be licensed by the country's Financial Services Authority.
The new company has received funding in-principle of $2.3m from industry players. However, Sey Re intends to increase this capital to $10m. The company plans to have a capital base of 100,000 equity shares of $100 each, with each investor to take up a minimum of 100 shares.
Mr Ravi Naidu, a founder of the reinsurance startup, said, “A turnover of $4m and a return of 8% on equity are targeted by the promoters in the first 12 months.”
Seychelles is a fast-developing centre of insurance business in the region with an insurance market worth $27.5m in 2018, says a letter from the company inviting expressions of interest.
The Seychelles insurance industry cedes an amount of $10m in reinsurance premium annually to overseas reinsurers. Sey Re, planning the right structure, optimal capitalisation and retro arrangements, aims to assist local insurers to be less reliant on overseas reinsurers and to motivate regional reinsurance brokers to generate inward business.
Members of the core management have been identified and Sey Re hopes to launch operations by 4Q2020.