Cameroon Reinsurance Company, a new national company will be launched with FCFA 15 billion ($27.1 million) of capital.
Kapital Afrik informed the publication that the reinsurer is in the final stages of its formation, and is awaiting legal approvals.
The launch of a national reinsurer in Cameroon was under discussion as early as July 2019, after the government appointed consulting firm Finactu to assist in the creation.
Now, Kapital Afrik says that local re/insurers, government authorities and partners have reached an agreement on the make-up of the company.
Local insurance and reinsurance companies will own 51 percent of Cameroon Re’s capital, a strategic partner (preferably a reinsurer) will hold 34 percent, the State of Cameroon will hold 10 percent and the remaining 5 percent will be held by other miscellaneous parties.
Several other African nations currently operate a state-backed reinsurance company, including Morocco, Tunisia, Kenya, Senegal and Nigeria.
Cameroon itself used to have operate the Caisse Nationale de Réassurance (CNR), but this reinsurance initiative was liquidated back in 2000.