Africa Specialty Risks (ASR), the developing markets focused (re)insurance group, has announced that ASR North Africa has received approval to operate as a service company from Lloyd's, allowing it to underwrite in the kingdom on behalf of Syndicate 2454.
This gives brokers in Morocco and North-West Africa direct access to Lloyd’s capacity. Morocco, the second largest insurance market in Africa, acts as a regional hub for this sub-region for specialty insurance risks.
The Francophone market of West Africa and the Maghreb has seen significant economic growth, with West Africa projecting an economic growth rate of 7% in 2023 while the Maghreb region is forecast to grow at 4.4% in 2024, according to the African Development Bank. Despite significant economic development, the region still faces a lack of specialty insurance solutions and capacity.
ASR opened its office in Casablanca in November 2022, and was granted Casablanca Finance City status by the Minister of Economy and Finance. Since then, the company has been growing its footprint in the African Francophone market, recently announcing a captives initiative with the West African Development Bank (BOAD).
In January this year, ASR launched its Baobab consortium at Lloyd’s. Baobab is the first Africa-focused Lloyd’s consortium. It offers partner syndicates access to developing markets and on-the-ground technical expertise. It will offer up to $21m in capacity across political risk, trade credit, political violence & terrorism, property, energy, construction and liability classes.
Mr Mikir Shah, ASR CEO, said, “Lloyd’s service company approval is an important moment for ASR’s operations in Morocco, which will serve North-West Africa. The region is seeing significant economic development but lacks both capacity and expertise in specialty (re)insurance. ASR is now one of the significant insurance players in the African market, and we look forward to leveraging our Baobab consortium to bring meaningful capacity to this important region.”
Ms Lamia Merzouki, COO, Casablanca Finance City Authority said, “We are proud to see ASR establish itself as a Lloyd’s service company in Casablanca, marking a significant milestone for the CFC community and further reinforcing our position as a reinsurance hub for Africa. A presence on the ground will enable ASR to accelerate its growth and expand its reach across the continent.”