Global insurer Chubb has made a US$10mn equity investment in the African Trade Insurance Agency (ATI), becoming the first global property and casualty insurer to invest in the multilateral political risk and credit insurance agency.
ATI supports trade and investment in African member state nations by offering complete risk solutions, including credit insurance and political risk products.
It currently has 16 African nations and 10 institutional members as shareholders, and claims to support trade and investment in the countries it represents equivalent to between 1 and 2% of their GDP.
Commenting on the deal, chairman and CEO of Chubb, Evan Greenberg, says: “Insurers play a crucial role in helping to drive growth and infrastructure improvements in the developing world.”
“With Chubb’s longstanding expertise in political risk and credit underwriting, we see our investment in ATI further advancing their important mission to promote investment, trade and economic growth throughout Africa,” he adds.
Chubb operates in 54 countries and territories around the world, and underwrites political risk insurance and reinsurance through its two business fronts, Sovereign Risk and Chubb Global Markets.
John Lentaigne, ATI’s acting CEO, comments on the investment: “We are delighted to welcome Chubb as one of our shareholders. Chubb’s global reach, financial strength, and expertise in this field positions them as a strategic shareholder for ATI as we look to build institutional resilience and broaden our global networks. We look forward to Chubb’s future involvement in further promoting ATI’s development mandate across the African continent.”
ATI had been building trade and investment links outside of the continent this year, signing a partnership agreement with Nippon Export and Investment Insurance (Nexi), Japan’s export credit agency, in September.
The Nairobi-based agency also penned agreements with two Japanese banks, Sumitomo Mitsui Banking Corporation and Mizuho Bank, having previously also signed an agreement with Mitsubishi UFJ Financial Group.