Africa-Press – Eswatini. A company that will provide long and short-term reinsurance services has been launched in the country.
Though Eswatini Re Limited was established in October 2018, it opened doors for operations in January 2022.
General Manager Qiniso Dlamini speaking at the event held during the entity’s launch, which was held at Hilton Garden Inn Hotel said they were a new player in the reinsurance space, looking to provide additional capacity within the local reinsurance space.
The company was born out of the vision of its parent company; the Eswatini Royal Insurance Corporation (ESRIC) after seeing the needs and demand of the industry for reinsurance coverage.
“Reinsurance is an integral part of insurance arrangements. Insurers have varying needs and requirements for reinsurance services depending on the type and nature of insurance products they sell,” said Dlamini.
Historically local insurers, according to Dlamini, have sourced insurance support from outside the borders. “We are aware that insurance and by extension reinsurance is about capacity, financial capacity, meaning having a strong balance sheet to meet one’s liabilities,” said Dlamini.
He said given the size and diversity of insurable risks in the country, it was improbable that anyone neither insurer nor reinsurer could have sufficient capacity to cover the risks.
ESRIC Board member Edward Sithole, who was representing board chairman Muhawu Maziya, said they injected E20 million to give life to the company.
According to the regulator’s 2020 annual report, the local market generated E385 million in reinsurance premiums. Of this, only nine per cent of the figure (E35million) was placed locally.
Eswatini Re-insurance Limited provides underwriting support to its partners through both treaty programmes and facultative placements of individual risks.
The company’s treaty programmes would be structured both proportionally (Quota Share and Surplus) and non-proportional (XOL) depending on the nature of the risk and appetite for it.
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