FBS Reinsurance Nigeria Limited (FBS Re) has said, the basis of its existence is to combat capital flight in insurance and reinsurance businesses in Nigeria and across Africa.
The company stressed that, it’s a paradox that the Nigerian and other African insurance industry players are forced to rely on foreign reinsurers, leading to the undesirable consequence of scarce foreign currencies being exported to pay for these services.
In a statement from the firm and made available to LEADERSHIP at the weekend, it said, African markets experienced foreign reinsurers withdrawing their capacities, especially, during any foreign currency liquidity crisis, which, unfortunately, is a perennial occurrence on the continent.
“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,” it 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.
Stressing that, it also leverages the business and other strategic relationships of frontline insurance companies that are institutional shareholders, namely Leadway Assurance, Custodian and Allied Group, Standard Insurance Consultants, Scib Nigeria Limited, and YOA Re Brokers, it added that, FBS Re focuses on offering better services to close the gaps in Nigeria and Africa and aims to be a significant player in international reinsurance.
Through hard work, FBS Re said, it is fast emerging as a significant African reinsurance player to the good acknowledgement of all stakeholders as the reinsurer, in 2021, 2022, and 2023, recorded a Gross Premium Written (GPW) of N7.91 billion N16.59 billion and N31.44 billion respectively.
“Having laid a strong foundation for future growth, the Board of FBS RE has now decided to restructure the Board and management. The founding CEO, Fola Daniel, and COO, Steve Kyerematen, who had stepped down as CEO and COO, respectively, were reappointed as Non-Executive Directors of the company.
Ganiyu Musa, a former deputy managing director of Africa Reinsurance Corporation and past group managing director of Cornerstone Insurance Plc, took the role of MD/CEO, while Shola Ajibade, director of operations, was appointed executive director of Technical and Business Development,even as Bala Zakariyau, an iconic figure in the insurance and reinsurance business, continues to lead the Board of Directors, ”the statement pointed out.
Today, only three reinsurance companies in Nigeria are licensed and regulated by the National Insurance Commission (NAICOM).
FBS Reinsurance, the latest and only local reinsurer established in Nigeria in 35 years, was registered in 2016, got an operating licence in late 2020, and commenced actual business operations on January 1, 2021.
With the insurance industry’s gross written premium or turnover in Nigeria on a steady rise 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.
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