The African Development Bank (AfDB) entered into the capital of the joint reinsurance company of the member states of the African Conference on Insurance Markets (CICA-RE) in the amount of 6.558 billion CFA francs, or 5.47% of the total shares.
The investment agreement between the two institutions was signed on Thursday 9 June 2022 in Abidjan in the presence of the Minister of Economy and Finance Adama Coulibaly.
The African Development Bank will increase the underwriting capacity of CICA-RE
Expressing his gratitude to the leaders of the African Development Bank, Managing Director of CICA-RE, Diarasuba Karim, said that entering the bank will enable the company to increase underwriting and custody capabilities, improve equity for its turnover, and enhance its ability to withstand the occurrence of major claims, its governance framework with impact potential on its financial rating and enhance support for member states in their economic development.
He promised that his institution will do its best to fulfill its obligations in this agreement.
On behalf of the African Development Bank, Atout Ahmed, Head of Capital Markets Development, welcomed this partnership that accompanies CICA-RE’s expansion in Africa.
Development of the insurance sector in Africa
Trump insisted that “the proposed operation is part of the Bank’s strategic interventions which aim to increase our contribution to the development of the reinsurance sector in Africa by promoting strong African players, such as CICA-RE, that are able to compete with international standards.”
Minister Adama Coulibaly stressed that the entry of the Asian Development Bank into the capital will enhance the company’s solvency as well as its financial strength. As such, CICA-RE called for the maximum benefit of the said agreement for a mutually fruitful partnership.
Among the main challenges, Mr. Coulibaly urged the company’s officials to maintain it at a high level of performance by continuing to fulfill its obligations that deserve the trust of its partners and enhancing its contribution to financing the development of its member countries. Promotion of insurance and reinsurance activities.
Aussi, at-il promis que le Côte d’Ivoire, premier marché de l’espace de la Conférence interafricaine des marchés d’assurances (CIMA), continuera d’accorder son appui à la CICA-RE pour son développement et son consolidated.
CICA-RE is the third regional reinsurance company in which the African Development Bank has invested after Africa-RE and PTA Reinsurance (ZEP-RE).
With a capital of 60 billion CFA francs and a revenue of 95 billion CFA francs in 2021, CICA-RE, created by the twelve member states of CIMA, is committed to constantly improving its governance, strengthening the oversight of its systems and standardizing its achievements.