Swiss Re expands African operations with new P&C licence

Swiss Re has strengthened its African business through its newly approved licence for property & casualty (P&C) business in South Africa.

The South African Prudential Authority has approved Swiss Re's application to expand the licence of its existing subsidiary, Swiss Re Life and Health Africa, to become a composite entity that can service both life & health as well as P&C business. Operations under the new licence took effect from May 1.

Swiss Re Life and Health Africa will be renamed Swiss Re Africa, a subsidiary of Swiss Reinsurance Company, Zurich.

Based in Cape Town, Swiss Re Africa will be led by Thys Nieuwoudt, and service the insurance hub in Johannesburg as well as Southern African markets.

The move will allow Swiss Re Africa to extend its service offering to P&C reinsurance capacity, and provide product solutions and tailored capital management services in the region. Further, it completes Swiss Re's ambition to re-domicile its Southern African P&C business onto the continent.

Swiss Re said the African continent, and the Southern African region in particular, provides an "excellent strategic fit" for the company, with growth increasingly driven by technological innovations such as mobile distribution, smart analytics and parametric insurance solutions.

"Our expansion in South Africa lays the basis for Swiss Re to upscale its market strategy in Africa," said Jean-Jacques Henchoz, CEO Swiss Re Reinsurance EMEA. "By shifting the center of gravity of our African business back to Africa, we are sending a clear signal that we believe insurance in Africa has a strong future. Swiss Re will be a force for enabling the industry to capitalize on the opportunities in South Africa and elsewhere on the continent."

Tavaziva Madzinga, market executive Middle East & Africa, Swiss Re added: "Our existing service to short-term insurers in South Africa is consistently ranked as best in class by clients and brokers. With this move, we take the next step and unlock the full potential of Swiss Re's capabilities for South African and Southern African clients. This is a vote of confidence for South African insurance and a clear signal that Swiss Re is backing growth in the region."

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