By Mercy Gakii
Kenya Re-insurance Corporation has bought ten shares worth Sh87.5 million to become a shareholder of the African Trade Insurance Agency.
"We are looking to tap into the growing interest in Africa, which means more business opportunities and growth in underwriting capacity," said ATI chief executive officer George Otieno.
Trade credit is a niche market that Kenya-Re plans to venture into in underwriting. Despite challenges in the emerging market, the reinsurance corporation plans to invest into research in the area.
"There is lack of information in trade credit, but we will engage credit bureaus in the continent to supply us with information that can help us in strategic decision making," said Jadiah Mwarania, Kenya-Re managing director.
The insurance agency is looking forward to covering some 59 government approved projects which will be executed through public-private partnerships.
"This should increase our credibility in East Africa and the rest of the continent as demand for reinsurance around Africa continues to grow," said Mwarania.
The joining of countries in the ECOWAS as shareholders in ATI is expected to increase presence of the insurer.
"Benin is a member of ATI and we hope that in the next five years, all 48 Ecowas member countries will be on board," said Otieno.
Over 60 per cent of investments in ATI are in assets rated AAA and AA categories, making the agency maintain a stable rating in the continent.
Source: The Star
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