German reinsurer Munich Re plans to boost the volume of its insurance premiums in Africa by 30 percent in the next three to four years, the head of the company's African unit said on Wednesday.
Munich Re, the world's largest reinsurer, is looking to tap burgeoning demand for insurance as fast-growing African economies ramp up infrastructure spending, Junior Ngulube told Reuters in an interview. Like many financial services firms, Munich Re sees big opportunities for growth beyond South Africa's mature market. Oil-rich countries such as Angola and Nigeria are particularly promising, he said.
Reinsurers act as a financial backup for smaller insurance firms unable to handle big risks on their own. Munich Re competes with Swiss Re and Hanover Re in South Africa, and with African Re in most of the rest of Africa.
The company has insured $350 million against the cancellation of the 2010 World Cup, which starts on Friday. South Africa accounts for about 80 percent of Munich Re's business in Africa, but Ngulube sees opportunities in oil-rich Uganda, Nigeria and Angola, as well as Kenya and Ghana.
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