FBS Reinsurance Nigeria (FBS Re) has said that one of its functions is to combat capital flight in insurance and reinsurance businesses in the country and across Africa.
African markets face foreign reinsurers withdrawing their capacities, especially, during any foreign-currency liquidity crisis, which, is a perennial occurrence on the continent, reported the publication Leadership, citing a statement by FBS Re.
“These foreign companies’ impromptu exits usually disrupt corporate planning efforts, erode much-needed stable reinsurance capacity, and increase the cost of business. Thus, the markets face capacity availability volatility to provide for growing industrial, Energy, Aviation, and Marine risks,” the statement pointed out.
These difficult scenarios, it added, compelled a group of mostly Nigerian insurance and reinsurance professionals to establish FBS Re to reduce the capacity gaps and to conserve the economy’s scarce foreign exchange.
FBS Reinsurance was registered in 2016, received an operating licence in late 2020, and commenced business operations on 1 January 2021.
With the insurance industry rising steadily and risks becoming more complex, the demand for reinsurance services is more pressing than ever, creating a significant market opportunity that FBS Re is tapping into.
In 2021, 2022, and 2023, the reinsurer recorded a Gross Premium Written of NGN7.91bn ($5bn), NGN16.59bn, and NGN31.44bn respectively.
At present, only three reinsurance companies in Nigeria are licensed and regulated by the National Insurance Commission (NAICOM).
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