NOTE: This news story is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Prospective investors should read the full Prospectus carefully and may consult a professional advisor.
The initial public offering (IPO) of shares in pan-African reinsurer Continental Reinsurance Holdings Limited is set to close on 16 September. Continental Re aims to list on the Botswana Stock Exchange (BSE) on 5 October as the first listed reinsurer, if all goes to plan. It will be the first IPO on the BSE since 2017 (UPDATE 2 September, check today’s story by Mbongeni Mguni on Bloomberg).
The listing aims to raise BWP 2.13 billion ($158.1m), made up of a private placement sale of shares at BWP 1 each by the existing shareholders of 1,719,122,374 shares ($127.7m) to selected institutional investors who have accepted the offer, and an IPO for 408,957,414 shares ($30.4m) to the public.
It aims to have 100% public float on the BSE after the offer. The minimum application is for 200 shares at BWP 1 each. The sponsor is Motswedi Securities and the receiving bank is Stanbic Bank. The offer opened on 5 August. The (the IPO “fast read” prospectus can be found on the BSE website here and the full prospectus here. The company has an investor relations website here.
What will the IPO fund?
The proceeds from the IPO, after deducting expenses, will go as new capital to Continental Re to fund growth, including: “organic growth” in core markets, new income streams called Alternative Risk Solutions where the company passes on risk to other reinsurance partners and takes fees, and investments into artificial intelligence (AI) and advanced analytics.
Lawrence Mutsunge Nazare, Group Managing Director, said in the 6 August press release: “The $30m we raise goes directly to work – strengthening our balance sheet and accelerating our path toward an A financial strength rating, growing our core underwriting business, scaling our capital-light Alternative Risk Solutions unit, and investing in the digital infrastructure that will make us a more efficient and responsive reinsurer for clients across Africa.”
The funds from the private placement will go to the selling shareholders: Capital Alliance Private Equity IV fund (47.3% of shareholding), special purpose vehicles CAPE Turaco (34.4%) and ACA Cornerstone (14.8%), and a few minority investors in Nigeria and USA, totalling 3.5%.
Continental Re has been operating for 40 years, has over 900 customers and is active in over 50 countries, with six regional hubs: Lagos, Nairobi, Gaborone, Douala, Abidjan and Tunis.
According to the 6 August press release: “Gross written premium of $165.6m (BWP 2.27bn) in FY2025 (financial year to December), up 5.5% year-on-year. Insurance revenue of $173.1m (BWP 2.32bn). Profit before tax of $9.7m (BWP 105m), an increase of more than 50% on the prior year. Loss ratio 33%; combined ratio improved to 92% from 94% in 2024.
“The African reinsurance market offers significant growth potential due to low insurance penetration, rising infrastructure investment, climate-related protection needs, and regulatory efforts to retain more premiums within Africa. Over the decade to 2024, African reinsurance premiums increased by approximately 89%, outpacing the growth of the continent’s direct insurance market. In 2024, Africa’s reinsurance market was valued at over $6.27bn, representing c.1.6% of the global market. The market is heavily dominated by the non-life (property and casualty) sector, which accounts for 87.5% of the total, leaving the remaining 12.5% for the life segment. Leading reinsurance markets include Kenya, Nigeria, Egypt, South Africa, Morocco, and Algeria.”
40-years of growth
The holding company was incorporated in the Botswana International Financial Services Centre (IFSC) in November 2023 and aims to list on the BSE Domestic Main Board.
The Group provides composite reinsurance across non-life and life business lines including Property & Engineering, Casualty & Liability, Marine & Aviation, Energy & Political Risks, Agriculture, and Life Insurance to insurance companies across Africa and the Middle East.
Continental Reinsurance Group was launched in Nigeria in 1985 (prospectus p.14) and started as a private reinsurance company, launching non-life operations in 1987 and life business in 1990. It opened offices in Cameroon (2004), Kenya (2008), Abidjan (2012) and Botswana (2014) and listed on the Nigerian Exchange (NGX, 2007).
Investors ACA and Sanlam joined the company (2016), the company delisted from the NGX and migrated the holding company to Mauritius. ACA bought out Sanlam’s stake (2023) and it has been moving its HQ to Botswana since then. The Botswana holding company owns the group through CRAFIL (Cre African Investments Limited), a holding company in Mauritius (p.13). Anglophone West Africa makes up 34% of revenue and East Africa 26%. See also this story by Chamberline Moko of Ecofin agency.
New MD for Botswana subsidiary
In other news, Poneso Ndonje succeeds Frances Nzwili as Managing Director of the Botswana subsidiary, Continental Reinsurance Botswana, subject to customary regulatory approvals, with effect from 1 September 2026. According to the press release: “The appointment reflects the strength of Continental Re’s internal talent pipeline and its approach to succession planning. A Botswana national, Ms Ndonje had been identified as Mr Nzwili’s successor well in advance and developed for the role over a number of years as part of the Group’s long-term succession planning.”