Global insurer Chubb has made a $10m equity investment the African Trade Insurance Agency (ATI), becoming the first global property/casualty insurance company to become a shareholder in the African multilateral political risk and credit insurer.
ATI supports trade and investment in African member states by providing political risk and credit insurance products. Established by treaty in 2001, ATI’s shareholders currently include 16 African nations and 10 institutional members.
Chubb itself currently underwrites political risk insurance and reinsurance through two of its businesses, Sovereign Risk, a specialty underwriter based in Bermuda, and Chubb Global Markets, its London market division.
“Insurers play a crucial role in helping to drive growth and infrastructure improvements in the developing world,” said Chubb chairman and CEO Evan Greenberg. “With Chubb’s longstanding expertise in political risk and credit underwriting, we see our investment in ATI further advancing their important mission to promote investment, trade and economic growth throughout Africa.”
ATI acting CEO John Lentaigne said, “Chubb’s global reach, financial strength, and expertise in this field” welcomes the insurer “as a strategic shareholder” for ATI as it looks to “build institutional resilience and broaden our global networks.”
Headquartered in Nairobi, ATI is Africa’s leading multilateral political risk and credit insurer. On average, ATI currently supports trade and investments in its member states equivalent to between 1% and 2% of GDP annually.
One of ATI’s objectives is to convince foreign lenders to invest in Africa. It encourages private partners to participate in public projects, thereby increasing the rate of public private partnerships in Africa.
ATI launched in 2001 to provide risk solutions for investors. It has received funding and technical support from the World Bank and the African Development Bank.
Other shareholders in ATI include Kenya Re, African Reinsurance and PTA Reinsurance. A