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Zep-Re expands capacity with Sh6.4 billion IFC guarantee
Nairobi-headquartered Zep-Re is the reinsurance arm of the Common Market for Eastern and Southern Africa, and also has eight country offices/regional hubs in Africa.
The International Finance Corporation (IFC) is set to offer a guarantee facility of up to $50 million (Sh6.46 billion) to reinsurance firm Zep-Re to boost its underwriting capacity in the region.
In its disclosures, the IFC said the guarantee would enable Zep-Re to underwrite a larger number of more profitable and higher-quality businesses.
Nairobi-headquartered Zep-Re is the reinsurance arm of the Common Market for Eastern and Southern Africa, and also has eight country offices/regional hubs in Africa.
“The proposed project consists of a guarantee limit for up to $50 million to cover the reinsurance credit risk of Zep-Re (PTA Reinsurance Company). The guarantee facility will enable the company to expand its outreach and enhance its performance through underwriting additional, more profitable, and higher-quality business,” said the IFC in its disclosures.
“The project will be complemented by advisory services to support the launch and expansion of digitally driven de-risking solutions for smallholder farmers and SMEs (including women-owned SMEs) across Africa.”
Nairobi Securities Exchange-listed Kenya Re is the largest shareholder in Zep-Re, having held a 19.76 percent stake in the company as of December 2024, as per the latest filings, ahead of the Trade and Development Bank at 17.99 percent and the Government of Rwanda at 6.26 percent.
The Treasury holds a 2.55 percent stake in Zep-Re, whose ownership is dispersed among African governments, state-owned corporations, private insurance firms and development finance institutions—in different classes of shares.
Zep-Re underwrites life and non-life risks across six major business lines —property, casualty, motor vehicle, marine, life and medical. Its main market is Kenya, where Kenya Re also draws most of its business.
In December 2024, property accounted for Zep-Re’s highest reinsurance exposure at $51.17 million (Sh6.61 billion), followed by casualty at $22.94 million (Sh2.96 billion), and medical at $21.68 million (Sh2.8 billion).
The firm’s net profit for the year to December 2024 rose 63.19 percent to $23.15 million (Sh2.99 billion), driven by a 14.9 percent growth in reinsurance revenue to $273.6 million (Sh35.3 billion).
Profitability was also helped by a 143 percent jump in net investment income, which rose to $18.18 million (Sh2.35 billion) from $7.49 million (Sh967.6 million) in 2023.
