The International Finance Corporation (IFC), the private sector-lending arm of the World Bank Group, is arranging a guarantee facility of up to $50 million to cover the reinsurance credit risk of ZEP-RE (PTA Reinsurance Company), a leading reinsurer in Africa with headquarters in Nairobi, Kenya.
A news report from Reinsurance News, an industry-focused online medium, published on Wednesday indicated that the guarantee facility from the IFC would enable ZEP-RE to expand its outreach and enhance its performance through underwriting additional, more profitable, and higher-quality business.
According to the IFC, the facility will be complemented by advisory services (AS) to support the launch and expansion of digitally driven de-risking solutions for smallholder farmers and SMEs, including women-owned SMEs (WSMEs)) across Sub-Saharan Africa (SSA).
The Corporation maintained that the most significant, expected project-level outcome from its facility remained increased access to agricultural insurance for farmers.
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It clarified: “Beyond the project-level outcomes, IFC anticipates that the project will grow the insurance market in Africa, increase the resilience of the insurance market, and help close the protection gap in Africa.”
Established in 1990, ZEP-RE has been delivering re/insurance solutions across the continent to close the protection gap, manage risk, and support sustainable growth in growing Africa’s resilience.
For instance, the company reportedly offered its clients a full range of reinsurance products and direct microinsurance solutions, leveraging strategic partnerships and technology/digital platforms.
