CLEMENT NWOJI

THE chairman of the African Reinsurance Corporation (African Re), Mr. Musa Al-Nas yesterday disclosed that the Corporation made a net profit of over N3.028 billion ($20.6 million) just as it achieved a production figure of N58.947 billion ($401 million) with shareholders’ funds hitting N32.681 billion iun its 2008 year end report.

He said that the developments in the Corporation showed a remarkable improvement recalling that at the inceptioon in January, 1978, the authorised share capital was N676.2 million ($4.6 million while it recorded premium income of N514.5 million ($3.5 million) at the end of the financial year.

AL-Nas made these disclosures while addressing the General assembly of the African Reinsurance Corporation during its 31st annual assembly in Abuja.

He urged the assembly to as a matter of urgency, consider beefing up the Corporation’s capital base to N36.75 billion ($250 million) in 2011 and N73.5 billion ($500 million) in 2015 as recommended at its last meeting held in Kigali, Rewanda.

AL-Nas however said that the 2008 financial year was a difficult one, because of the effects of the global economic crisis. He disclosed that meltdown will be grievous on the insurance sector if it persists, saying that there was need for the African Reinsurance Corporation to come up with measures to mitigate the impact.

He further said "Indeed, at time when the economic and financial crisis, which many believed would spare Africa due to its marginalisation in the world economy, is still impacting more severely on the poorest regions of the globe and economic operators and indeed the insurance sector, despite its sound financial base could be shaken if the recession continues.

"Indeed, after the failure of a major global merchant bank and the near collapse of a world insurance group, no player, irrespective of its geographical and financial size, can feel totally safe from this economic disorder," he reiterated.

The chairman charged that African Re must extend its marketing network and physical presence to more African territories by completing the projects to establish offices in Launda (Angola), Addis Ababa (Ethiopia) before embarking on new ones.

The Pan-African Insurance firm has presence in seven production centres, Casablanca, Nairobi, Abidjan, Johnannesburg, Mauritius, Cairo and Lagos.

Speaking earlier at the event, the Minister of State for finance, Mr. Remi Babalola who was the special guest of honour expressed belief that the insurance industry would contribute more to the economic development of the African continent.

He said "We can deepen insurance penetration in our countries by making insurance more credible and more attractive to our peoples," adding that Nigeria, began a process of strengthening and repositioning its insurance sector a couple of years ago by rationalising and recapitalisating insurance companies.

He revealed that Nigerian laws are being reviewed with a view to facilitating a more effective and conducive environment for the rapid growth and development of the sector.

He noted that Nigeria having hosted the headquarters of the African Reinsurance Corporation from its inception in 1976, the nation’s insurance industry has benefited immensely from the partnership that has resulted from the proximity of the Corporation.

He assured that Government of Nigeria would continue to support the corporation and indeed all other continental organisations and bodies to promote and accelerate the realisation of African Union ideals.