Africa Re achieves 96% subscription success in capital raise

African Reinsurance Corporation (Africa Re) 4th capital increase commenced in 2010 has achieved a 96 percent success in subscription, representing an additional $150 million injection into the company, even as the offer is extended to 2014 to allow more time for members wishing to take their rights.

The extension now between June 1, 2013 and May 31, 2014 places offer price at $234 for regional shareholders, and $225.57 and $279.17 for non-regional shareholders according to two existing valuations.

Musa S. El Nass, chairman of the Board of Directors and General Assembly of Africa Re who spoke at the Company’s 35th Annual General Meeting in Senegal said that “the subscription and payment of shares issued by the Corporation in 2010 continued with remarkable result in 2012.”

He expressed delight that “the shareholders have massively demonstrated their entire confidence in the corporation and its future with more than 96 percent subscription of new shares offered representing an additional capital of $150 million.”

As contained in the resolution of the General Assembly, members were delighted with the confidence that the majority of existing shareholders including States, Development Finance Institutions, and Insurance and Reinsurance Companies bestowed on Africa Re by subscribing in the new shares.

They also commended the keen interest shown by African States and Companies and encouraged them to steer a steady course to preserve the African character of the corporation.

Accordingly, the General Assembly authorised that the 4th capital increase be kept open to allow traditional shareholders who are facing difficult times to subscribe and pay. “The General Assembly further authorised that the capital structure slightly differs from the related provision of the Agreement Establishing the Corporation while trying to find ways of returning to the ideal structure of 40 percent for African Development Banks; 35 percent for Insurance/Reinsurance Companies and 25 percent for Non-Regional shareholders.

The meeting also witnessed the election of directors for a period of two years beginning from July 2013.

They are Mohammed Ahmed, Egyptian financial supervisory authority and representing the states and companies of Egypt; Fola Daniel, Nigerian commissioner for Insurance representing the State and Companies of Nigeria and Fathi S. Bala of Libia representing State and Companies of Libya.

The corporate achieved an income of $647.98 million at the end of 2012 Financial year as against $631`.49 million recorded in 2011, a 2.6 percent increase while the net profit stood at $92.65 million compared to $69.20 million the previous year.

The African Reinsurance Corporation is an international financial institution comprising 41 member countries of the African Union and Development Finance Institutions , as well as the about 100 insurance and reinsurance companies operating in member countries and IRB- Brazil Re.