Sub-Saharan Reinsurance Markets Attract Capacity
Monday, 09 28 2015, Category: Insurance and Reinsurance, Country: Africa
Much has been said in recent years about the opportunities presented by the buoyant strides in economies across the African continent together with challenges that market participants have to overcome; the continent’s re/insurance industry is no exception, according to a new report from A.M. Best.
Following years of strong economic activity, led in part by high commodity prices and foreign direct investment, there is now uncertainty about the sustainability of the robust levels of growth experienced in recent years, particularly with low oil prices, said the report titled “Capacity Flows into the Sub-Saharan Reinsurance Markets Despite Economic Challenges.”
This uncertainty is increasing the levels of capital being repatriated as investors’ confidence in Africa’s economic prospects decreases, the report said. On the other hand, the report noted that the re/insurance markets of the sub-continent continue to attract interest from around the world as foreign investments in this sector seek growth, returns and diversity outside of their core markets.
Source: Insurance Journal