Botswana’s Grand Reinsurance and Gabon’s Société Commerciale Gabonaise de Réassurance (SCG-Ré) have signed a technical and commercial agreement to grow their businesses in their respective markets.
Dr Andrew Gwodog, director general of SCG-Ré and president of FEGASA, said the agreement was all about “investing with passion and efficiency in the service of a sustainable world”.
CEO of Grand Re, Tatenda Katoma, explained: “This is a strategic agreement which will allow us to exchange technical skills and enable both companies to expand into new markets.”
He said Grand Re is strong in southern and eastern markets, while SCG-Ré was strongest in central and west Africa.
“By combining our efforts, we can organically grow our businesses in each other’s regions without competing for that business.”
Grand Re operates in Botswana, Zimbabwe, Tanzania and Cameroon and is rated AA+ by GCR, while Gabon-headquartered SCG-Ré was created on 22 February 2012 and is governed by the provisions of the OHADA Uniform Act. SCG-Ré is an initiative of the Gabonese state.
Mr Katoma said the deal has been on the table since the FANAF meeting in May and had been concluded quickly because of the many synergies between the two reinsurance groups.
“This is a sustainable way for us to achieve our targets of growth across Africa,” he said.
“We want to take one step at a time, but we were able to align ourselves with SCG-Ré both in terms of classes of business but also in terms of our loss ratio, strategy, appetite to grow and our overall philosophies.”
SCG-Ré also said that an IPO might follow for the Gabon group but have given no further details. It was reported that SCG-Ré had decided to raise capital through a listing on the Central African Stock Exchange (BVMAC) to finance its expansion into new markets in Africa and improve its performance.