A new national reinsurance company will soon start its activities in Cameroon with a capital of FCFA15bn ($27bn).
Sources familiar with the matter told Kapital Afrik that the establishment of the reinsurer, to be called Cameroon Re, is in the final phase and that preparations have reached “the critical stage of legal constitution”.
Stakeholders including local insurers and government authorities have reached an agreement on shareholdings in the company. Local insurance and reinsurance companies will own 51% of the capital. The remaining shares will be held by a strategic partner, preferably a reinsurer (with 34%), the State of Cameroon (10%) and others (5%).
With the formation of Cameroon Re, Cameroon will join the list of African countries which have their own national reinsurers. The countries include Morocco, Tunisia, Kenya, among others.
The main objective of setting up Cameroon Re is to protect the balance of payments by optimising local capacity.
Cameroon used to have a national reinsurer, the Caisse Nationale de Reassurance, which was liquidated in 2000.