Reinsurance group Africa Specialty Risks (ASR) has unveiled the first Africa-focused Lloyd's Consortium, named Baobab, expanding insurance coverage across Africa and the Middle East.
The consortium, which commenced operations on Jan. 1, offers a substantial US$21 million in capacity across multiple insurance sectors, including political risk, trade credit, political violence and terrorism, property, energy, construction, and liability.
Led by ASR Syndicate 2454, Baobab represents an initiative in a market where African risks currently constitute 2% of Lloyd's business. The consortium aims to bridge this gap by leveraging ASR's extensive regional expertise and established distribution networks.
“Africa and the Middle East offer deep pools of opportunity for insurers but require specialist local knowledge and tailored underwriting solutions. ASR can offer a unique African-focused platform which increases access to local markets while providing developing economies with additional global insurance capacity," Mikir Shah, CEO of ASR, said in a press release.
“I would like to thank our syndicate partners for supporting this consortium. We look forward to growing the Baobab Consortium in the coming months as we work to bring further meaningful global capacity to the region and accelerate sustainable economic growth.”
The consortium's importance lies in its ability to facilitate efficient capital deployment through multiple distribution hubs across Africa and the Middle East. This structure provides local economies with access to global insurance capacity while offering Lloyd's syndicates a structured pathway into developing markets.
ASR's track record includes participating in de-risking projects and assets worth $28 billion across 63 African countries. The organization has operations in key locations such as London, Mauritius, Bermuda, Morocco, and Dubai.
The Baobab Consortium is positioned for growth throughout 2025, with plans to incorporate additional capacity partners. This expansion strategy aligns with ASR's broader mission of accelerating sustainable economic growth in the region while providing comprehensive risk mitigation solutions to both local and global customers.
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