FBS Reinsurance targets N20bn new capital
FBS Reinsurance Limited (FBS Re), one of Nigeria’s youngest reinsurance companies has announced plans to raise an additional N20 billion to enhance its operations.
Having commenced operations in 2021, FBS Re in its one year of business recorded a gross written premium of N7.906 billion, underscoring strong growth opportunity in the Nigerian market, expertise and experience brought in by company managers.
Its profit before tax in the one-year period stood at N505.48 million, while the total assets rose to N15.80 billion at the end of 2021.
Bala Zakariyau, chairman of the Company announced the performance and plans at its first Annual General Meeting held in Lagos.
Zakariyau said the Nigerian insurance industry continues to present enormous potential for investors, especially in the reinsurance sub-sector.
He said the industry is operating in the biggest economy in Africa with obvious demographic advantage, middle-class expansion and insurance penetration now only 0.3 percent, stating that gross written premium growth of 10 to 15 percent per annum if therefore feasible.
Fola Daniel, managing director/CEO of the FBS Re said the company has investors that want to bring in money, stating that the planned N20 billion new capital injection would happen soonest.
“We have investors standing by that want to bring in money, so we are confident that it would be completed soon,” Daniel said.
“On the company’s performance, he said we are just starting and the future is bright.”
“The insurance market is growing, and FBS Re is positioned to further this growth using disruptive technology and its debt of experience,” Daniel said
He said the company is poised through its service offerings to lead growth in the local content development of reinsurance business through treaty and facultative arrangements that will expand the frontiers of the insurance spend retention in Nigeria and lead to a reduction in insurance premium exports in the near future.
“The cumulative experience of the company’s promoters and its executive management spanned over 100 years, and this expertise and network is expected to leverage the company to a Pan-African reinsurance platform in the next 3-5 years.
FBS Re was granted a license by the National Insurance Commission (NAICOM) on the 27th November 2020 and commenced business on the 1st of January 2021 as a wholly Nigerian reinsurance company.