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PRESS RELEASE 26 March 2015 Africa Re – FAIRFAX: Another Milestone in Africa Re’s Search


26 March 2015

Africa Re – FAIRFAX: Another Milestone in Africa Re’s Search for Enabling Strategic Partnership

In less than one month, Africa Re has signed two agreements with two leading global investors. The latest was signed on 25 March 2015 with Fairfax Financial Holdings. FAIRFAX paid US$ 61 million to become a new shareholder of Africa Re, the leading African reinsurer. FAIRFAX thus acquires a 7.15% stake and a seat on the Board of Africa Re.

FAIRFAX, a Toronto based holding and group of insurance and reinsurance companies with subsidiaries around the globe, is engaged in property and casualty insurance, reinsurance, and investment management.

The new strategic partnership with FAIRFAX, after the recent entry of AXA in February 2015, has strengthened Africa Re with a US$ 122 million capital. It is also a clear strategic move intended to achieve strong business partnerships with global industry players”.

Talking about what FAIRFAX will bring to Africa Re, Mr. Corneille Karekezi, Africa Re Group Managing Director / Chief Executive Officer, stated: “We will work together to strengthen our positions in the reinsurance market with regard to product development, underwriting expertise, human capacity development, actuarial services, enterprise risk management, corporate governance, claims management and investment”.

Furthermore, commenting on the partnership with FAIRFAX Mr. Corneille Karekezi stated that it is “A great development for Africa Re, demonstrating the maturity of the company, its commitment and ability to strategically position itself in the fast changing and competitive landscape of the international reinsurance industry”.

The shareholding structure of Africa Re changed over time from a pure multilateral institution in the 1970s and 1980s to a diversified shareholding comprising 41 African states (34%), over 100 African insurance and reinsurance companies (33%), the African Development Bank (8%), IRB-Brasil Re, a leading Brazilian reinsurer (8%), AXA, the global leading French insurer that joined recently with a 7.15% stake and Proparco, a branch of the Agence Française de Development.

Until recently, development finance institutions (DFIs), namely the International Finance Corporation (IFC), member of the World Bank Group, DEG (branch of the KfW bank) and FMO (Dutch development finance organization) constituted the core of the non- African shareholding capped at 25% of the capital of Africa Re. FAIRFAX has acquired part of the shares put back by those DFIs that invested in Africa Re capital in 2004 and are exiting in accordance with a put option agreement allowing them to exit after the elapse of their investment horizon.