Africa offers huge potential for insurers although the risks are many and varied. Here’s some news from Lloyd’s as a Consortium strategy gets the green light;
Africa Specialty Risks (“ASR”), the Africa and Middle East focused (re)insurance group, announces the launch of the first Africa Focused Lloyd’s Consortium.
The Consortium, known as Baobab, will offer up to USD $21 million in capacity across Political Risk, Trade Credit, Political Violence & Terrorism, Property, Energy, Construction and Liability.
Baobab was launched on 1 January 2025 and will look to grow throughout the year by bringing in additional capacity partners.
Led by ASR Syndicate 2454 and supported by leading Lloyd’s Syndicates, Baobab will provide access to risks originating in Africa and the Middle East by leveraging ASR’s local knowledge, deep market expertise, and distribution networks across the region.
Baobab provides a unique partnership model for Syndicates looking to access Africa and developing markets, which in turn provides additional insurance capacity for local economies. ASR has multiple distribution hubs in Africa and the Middle East, allowing efficient capital deployment to fulfil a substantial unmet need. As of 2023, risks originating in Africa account for only 2% of the Lloyd’s market.
Mikir Shah, CEO of ASR, commented: “Africa and the Middle East offer deep pools of opportunity for insurers but require specialist local knowledge and tailored underwriting solutions. ASR can offer a unique African-focused platform which increases access to local markets while providing developing economies with additional global insurance capacity.
“I would like to thank our Syndicate partners for supporting this Consortium. We look forward to growing the Baobab Consortium in the coming months as we work to bring further meaningful global capacity to the region and accelerate sustainable economic growth.”
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