Continental Re launches $156.1m public offer on Botswana exchange

The public offer for Continental Reinsurance Holdings Limited, one of Africa’s leading pan-African reinsurers, continues to build strong momentum as retail and institutional investors examine the firm’s long-term growth trajectory and the expanding opportunities within the continent’s insurance sector.

Having opened on 5 August, 2026, the transaction allows investors to participate in a business that has supported African insurance markets for more than four decades. As the first reinsurer seeking a listing on the Botswana Stock Exchange, the move marks a significant landmark for both Continental Reinsurance and Botswana’s capital markets.

Total Initial Public Offering proceeds are estimated at approximately $156.1m, which includes $126.1m linked to the acquisition of existing shares alongside $30m in fresh primary capital for the group.

The listing is set to solidify Botswana’s standing as a hub for pan-African financial services, supported by the group’s Botswana-domiciled holding company accredited under the Botswana International Financial Services Centre framework.

Speaking on the transaction, the Group Managing Director, Lawrence Nazare, emphasised the strategic importance of the offering, stating, “The Public Offer gives investors an opportunity to understand our business, our markets and our future growth plans. Continental Re has spent more than 40 years helping insurers across Africa absorb risk, build resilience and support economic growth. Through this Public Offer, we are inviting investors to participate in the next phase of that journey.”

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Nazare added that the $30m in fresh primary capital will strengthen the company’s underwriting capacity, support solvency and rating resilience, and help scale its Alternative Solutions business. He noted that it will also support its aspiration to strengthen its financial strength rating over time, positioning Continental Re to serve even more clients across the continent, while providing a compelling investment proposition through disciplined underwriting, strong governance, and a pan-African footprint.

Continental Re supplies composite reinsurance solutions to insurance providers across more than 50 African nations via six regional operating hubs located in Gaborone, Lagos, Nairobi, Douala, Abidjan, and Tunis. The group currently services over 900 cedant, broker, and counterparty relationships with a diversified portfolio spanning Property & Engineering, Casualty & Liability, Marine & Aviation, Energy & Political Risks, Agriculture, and Life Insurance. Rather than relying strictly on balance-sheet scale, the group differentiates itself through its widespread distribution network, four decades of market experience, and close relationships across diverse linguistic, regulatory, and economic environments.

Capital raised from the offer will directly fuel Continental Re’s upcoming growth phase by strengthening its core capital base, expanding its Alternative Solutions line, supporting efforts toward a higher financial strength rating, and financing continuous investments in operational capabilities and technology across Africa. The Alternative Solutions division plays a central role by utilizing pan-African underwriting capabilities to originate and structure local risks for global placement, generating fee, commission, and underwriting income in a capital-efficient manner without requiring the group to retain all associated risks on its balance sheet.

Financial performance figures reflect continuous operational resilience for the firm, as Continental Re recorded insurance revenue of BWP 2.32bn ($173.1m) and gross written premiums of BWP 2.27bn ($165.6m). Profit before tax reached BWP 105.3m ($9.7m), marking a year-on-year increase of more than 50 per cent. The loss ratio stood at 33 per cent, while the combined ratio improved to 92 per cent from roughly 94 per cent in the previous year. AM Best assigned the company a financial strength rating of B+ with a stable outlook, rating its balance-sheet strength as very strong, while the board intends to distribute between 40 per cent and 60 per cent of annual net income as dividends, subject to performance and board approval.

The broader African reinsurance market generated approximately $6.3bn in gross premiums in 2024, representing an 89 per cent increase between 2015 and 2024. Despite this trajectory, Africa currently represents only 1.6 per cent of global reinsurance premiums, with insurance penetration across the continent sitting at around 2.8 per cent of gross domestic product compared to a global average near 6.8 per cent, highlighting a substantial runway for future sector expansion. Shares for the public offer are priced at BWP 1.00 per share with a minimum application requirement of 200 shares, accessible through the prospectus, sponsoring broker Motswedi Securities, the Botswana Stock Exchange, and Continental Reinsurance Holdings offices.