Algeria: Reinsurer to increase capital
State owned Central Reinsurance Company (CCR) plans to increase its share capital to DZD25bn ($193m), 14% higher than the current level of DZD22bn.
The company is awaiting the approval of the Insurance Supervision Commission (CSA) for the capital increase.
In a media release issued last week, Algiers-based CCR explains that the goal is to strengthen its financial base in the national and international market.
In October, AM Best affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of CCR. The outlook of these credit ratings is stable.
The ratings reflect CCR’s balance sheet strength, which AM Best categorises as very strong, as well as the company’s strong operating performance, neutral business profile and marginal enterprise risk management.
The balance sheet is protected further by a state guarantee (in the form of an interest-free loan facility) covering business written as part of Algeria’s compulsory natural catastrophe scheme.
AM Best notes that CCR has a leading domestic market position as the national reinsurer in Algeria, with an estimated market share of 70% in 2019, as measured by ceded premium. As a state-owned company, CCR benefits from compulsory cessions.