Continental Reinsurance Holdings Ltd. is looking to execute the first initial public offering on the Botswana Stock Exchange since 2017, as it seeks capital acquisition to facilitate its regional expansion.
- Continental Reinsurance Holdings Ltd. is launching the first IPO on the Botswana Stock Exchange since 2017 to fund regional expansion.
- Around 20% of the $155 million capital raised will go toward strategic growth initiatives, with the rest distributed to current shareholders.
- Africa’s insurance market remains small and underpenetrated, with premiums per person 19 times lower than the global average and only 0.9% of the global market.
- Despite low penetration, African reinsurance premiums grew by 89% from 2014 to 2024, indicating rising demand.
Approximately 20% of the 2.13 billion pula ($155 million) capital raised will be allocated to strategic growth initiatives across the continent, with the balance distributed to current shareholders liquidating their equity.
Lawrence Nazare, Managing Director of Continental Re, stated that substantial market potential exists within Africa, driven by insurance penetration levels that remain disproportionately low relative to the region’s overall economic output and risk exposure.
“Africa remains materially underinsured relative to its population, economic activity, infrastructure needs and underlying risk exposures,” Managing Director Lawrence Nazare said in response to emailed questions.
The company plans to use the new money to take on more insurance business, develop new products and improve its technology, data and analysis.
Africa’s insurance market remains small compared with other parts of the world, according to the Swiss Re Institute.
Insurance premiums across the continent are equal to about half the global average when measured against the size of the economy.
On a per-person basis, the gap is even wider, as Africa’s insurance premiums per person are about 19 times lower than the global average, leaving the continent with only about 0.9% of the world’s insurance market.
However, the market is growing, as evidenced by the fact that African reinsurance premiums increased by about 89% between 2014 and 2024, showing that demand for insurance-related services is rising.
Continental Re’s IPO opened on the 5th of August and will close on the 16th of September, as reported by Bloomberg.
The company is offering its shares at 1 pula each and expects to begin trading on the Botswana Stock Exchange next month.
Nazare said Africa’s growing economies, expanding cities, infrastructure projects, financial inclusion and rising climate risks could all increase demand for insurance in the years ahead.
Continental Re currently operates in more than 50 African countries through six regional hubs, including Gaborone, Lagos, Nairobi and Tunis. Its gross written premiums rose 5.5% to about $165.6 million in 2025.
