Continental Reinsurance Holdings Limited has opened an Initial Public Offering (IPO) on the Botswana Stock Exchange (BSE) aiming to raise 2.13 billion Botswana pula (BWP), equivalent to approximately $156.1 million. This offering, which began on August 5 and is scheduled to close on September 16, will make Continental Reinsurance the first reinsurer to be listed on the BSE when it is expected to start trading on October 5. The IPO is structured into two main components: 409 million BWP ($30 million) in new capital directly for Continental Reinsurance to fund its growth initiatives, and 1.72 billion BWP ($126.1 million) from the sale of existing shares, which will go to current shareholders.
The funds raised by Continental Reinsurance will be strategically deployed to strengthen its balance sheet, support its goal of achieving an 'A' financial strength rating, expand its core underwriting business, and grow its capital-light Alternative Risk Solutions unit. Additionally, the company plans to invest in digital infrastructure and explore new African markets and potential acquisitions. This IPO marks Continental Reinsurance's return to public markets, having delisted from the Nigerian Stock Exchange in 2020 as part of a group restructuring that involved establishing a regional holding company in Botswana's International Financial Services Centre.
For the financial year 2025, Continental Reinsurance reported robust financial performance, with gross written premiums of $165.6 million, a 5.5% increase year-on-year, and insurance revenue of $173.1 million. Profit before tax rose by over 50% to $9.7 million, with a loss ratio of 33% and an improved combined ratio of 92% from 94% in 2024. The company, which operates across more than 50 African countries and serves over 900 clients, aims to capitalize on the significant growth potential in the African reinsurance market, which experienced an 89% increase in premiums over the decade to 2024, outpacing the continent's direct insurance market growth.
