In a report, the multinational disclosed that the value of gross risks it has assumed in Kenya stood at $724.7 million (Sh72.9 billion in the year ended December 2019.
This represents a 12.4 percent decline compared to $828 million (Sh83.3 billion) a year earlier.
Kenya is among the significant shareholders in ATI and has provided capital of $28.7 million (Sh2.8 billion) to the continental insurer.
Nairobi-based African Trade Insurance Agency (ATI) has reduced its gross exposure to risks in the local market by Sh10.3 billion as it seeks to diversify its portfolio geographically.
In a report, the multinational disclosed that the value of gross risks it has assumed in Kenya stood at $724.7 million (Sh72.9 billion in the year ended December 2019.
This represents a 12.4 percent decline compared to $828 million (Sh83.3 billion) a year earlier.
The insurer said the changes in risk exposures are part of its “continued diversification.” ATI, for instance, more than doubled its gross commitments to Côte d'Ivoire to $1 billion (Sh100 billion) and made a complete portfolio exit in Burundi.
ATI supports trade and investment in African member states by providing comprehensive hedging solutions, offering covers against political and credit risks.
The insurer’s products include protections against various political risks including wars, seizure of an asset by the government, defaults or change in laws.
Kenya is among the significant shareholders in ATI and has provided capital of $28.7 million (Sh2.8 billion) to the continental insurer.
The multinational does not take all the risks in its balance sheet but passes some of them to reinsurers as a risk-sharing mechanism.
Its net exposure to Kenya in the review period stood at $165.9 million (Sh16.6 billion), down 16.3 percent from $198.3 million (Sh19.9 billion) a year earlier.
ATI has been raising large sums of capital from new shareholders as it seeks to boost its capacity to offer insurance covers in the continent.
The multinational is raising a total of $69.1 million (Sh6.9 billion) from five new member countries that will be issued with shares amounting to a combined 18.72 percent stake in the company.
The underwriter has already received Sh1.4 billion and Sh1.7 billion from Nigeria and Ghana respectively. Nigeria acquired a 3.8 percent stake in the transaction while Ghana secured a 4.78 percent equity.
Niger, Togo and Cameroon will each invest Sh1.2 billion in ATI by end of March and will each receive a stake of 3.38 percent in the insurer.
Besides raising capital from new member states, the insurer also recently sold a 3.5 percent stake to Swiss insurance firm Chubb for Sh1 billion as part of its efforts to strengthen its balance sheet.
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