The West African Development Bank (BOAD) and Africa Specialty Risks (ASR) have signed an agreement to carry out a feasibility study on the establishment of a captive insurance company.
Under the terms of this partnership, ASR will support BOAD in setting up and managing the captive, according to a statement on the website of BOAD.
This initiative will allow the bank to achieve greater financial flexibility and resilience in the management of specific risks. The collaboration reflects the commitment of both organisations to strengthening risk management practices and stimulating sustainable economic development in West Africa.
By adopting the “originate to distribute” approach, BOAD is currently leveraging the credit risk insurance market to optimise its capital allocation, increase its operational capacity and improve both the quality of its portfolio and its risk profile. Exploring a captive insurance company represents the next evolution of BOAD’s strategy, allowing the bank to have increased control, enhanced financial flexibility and greater resilience in managing the risks associated with its development projects.
Mr Serge Ekué, president of BOAD, said, “This feasibility study represents a major step forward in strengthening risk management and financial resilience in West Africa. BOAD is firmly committed to using the credit insurance market to better manage its financial risks and increase its capacity to promote sustainable economic growth.”
Mr Mikir Shah, CEO of ASR, said, “Our partnership with BOAD is a testament to ASR’s expertise and our commitment to being a leading provider of captive solutions for institutions that drive economic progress in Africa.”
BOAD is the common development financial institution of the member countries of the West African Economic and Monetary Union (WAEMU). It is an international public institution whose purpose, is to promote the balanced development of its member states and to foster the economic integration of West Africa by financing priority development projects.
ASR provides comprehensive risk mitigation solutions through high-quality underwriting to local and international clients across Africa and the Middle East, with operations in London, Mauritius, Bermuda, Morocco and Dubai.