CONTINENTAL RE LAUNCHES $156.1M PUBLIC OFFER ON BOTSWANA EXCHANGE

Continental Reinsurance Holdings Limited, a leading pan-African reinsurer, has launched a $156.1m public offer on the Botswana Stock Exchange.

The offer, which opened on August 5, 2026, gives retail and institutional investors an opportunity to acquire shares in the company, which has operated in African insurance markets for more than four decades.

The transaction marks the first time a reinsurer is seeking a listing on the Botswana Stock Exchange.

The total proceeds from the offer are estimated at $156.1m, comprising $126.1m from the sale of existing shares and $30m in fresh capital for the group.

The listing is expected to further strengthen Botswana’s position as a centre for pan-African financial services. Continental Re’s holding company is domiciled in Botswana and accredited under the Botswana International Financial Services Centre framework.

The Group Managing Director of Continental Re, Lawrence Nazare, said the public offer would give investors an opportunity to understand the company’s operations, markets and future growth plans.

He said the company had spent more than 40 years helping insurers across Africa manage risks, strengthen resilience and support economic growth.

Nazare added that the $30m in new capital would be used to expand the company’s underwriting capacity, strengthen solvency and rating resilience, and grow its Alternative Solutions business.

He said the additional capital would also support the company’s efforts to improve its financial strength rating and expand services to clients across Africa.

Continental Re provides composite reinsurance solutions to insurance companies in more than 50 African countries through six regional hubs in Gaborone, Lagos, Nairobi, Douala, Abidjan and Tunis.

The group has more than 900 relationships with cedants, brokers and counterparties, with its portfolio covering property and engineering, casualty and liability, marine and aviation, energy and political risks, agriculture and life insurance.

The company said its wide distribution network, more than four decades of experience and relationships across different regulatory and economic environments form part of its competitive strengths.

Funds raised through the offer will be used to strengthen Continental Re’s capital base, expand its Alternative Solutions business, support efforts toward a higher financial strength rating and improve its operational and technological capabilities across Africa.

The Alternative Solutions business uses the group’s underwriting expertise to structure and place African risks with global markets, generating fee, commission and underwriting income while limiting the amount of risk retained on the company’s balance sheet.

Continental Re recorded insurance revenue of BWP2.32bn, equivalent to $173.1m, while gross written premiums stood at BWP2.27bn, or $165.6m.

Profit before tax rose by more than 50 per cent year-on-year to BWP105.3m, equivalent to $9.7m.

The company’s loss ratio was 33 per cent, while its combined ratio improved to 92 per cent from about 94 per cent in the previous year.

AM Best assigned Continental Re a B+ financial strength rating with a stable outlook and assessed its balance-sheet strength as very strong.

The board also plans to distribute between 40 and 60 per cent of annual net income as dividends, subject to the company’s performance and board approval.

The African reinsurance market generated about $6.3bn in gross premiums in 2024, representing an 89 per cent increase between 2015 and 2024.

Despite the growth, Africa accounts for only about 1.6 per cent of global reinsurance premiums, while insurance penetration on the continent stands at approximately 2.8 per cent of GDP, compared with a global average of about 6.8 per cent.

The company said the figures highlight the potential for further expansion of Africa’s insurance and reinsurance market.

Shares in the public offer are priced at BWP1 per share, with a minimum application of 200 shares. Investors can access the offer through the prospectus, sponsoring broker Motswedi Securities, the Botswana Stock Exchange and Continental Reinsurance Holdings offices.