Africa Specialty Risks (ASR), a reinsurance group dedicated to the African and Middle Eastern markets, has launched Baobab, the first Africa-focused Lloyd’s Consortium.
The initiative, aimed at bolstering insurance capacity in the region, represents a significant step forward for emerging markets.
Unveiled on January 1, 2025, Baobab offers up to $21m in insurance capacity across sectors including political risk, trade credit, political violence and terrorism, property, energy, construction, and liability.
The consortium is led by ASR Syndicate 2454 and backed by several leading Lloyd’s Syndicates, highlighting strong support from global insurers.
ASR leverages its extensive local knowledge, market expertise, and distribution networks across Africa and the Middle East to make Baobab a unique partnership model for Lloyd’s Syndicates.
This model not only facilitates access to developing markets but also addresses a substantial unmet need for insurance in local economies. Currently, risks originating in Africa account for just 2% of the Lloyd’s market, underscoring the region’s untapped potential.
The new consortium is designed to attract additional capacity partners throughout the year. ASR’s multiple distribution hubs in Africa and the Middle East enable efficient capital deployment, which supports sustainable economic growth in the region.
By providing tailored underwriting solutions, Baobab aims to close gaps in coverage and unlock opportunities for insurers.
ASR CEO Mikir Shah emphasised the importance of specialised local knowledge in unlocking Africa and the Middle East’s potential. He stated, “Africa and the Middle East offer deep pools of opportunity for insurers but require specialist local knowledge and tailored underwriting solutions. ASR can offer a unique African-focused platform which increases access to local markets while providing developing economies with additional global insurance capacity.
Shah also expressed gratitude to Syndicate partners for their support, remarking, “I would like to thank our Syndicate partners for supporting this Consortium. We look forward to growing the Baobab Consortium in the coming months as we work to bring further meaningful global capacity to the region and accelerate sustainable economic growth.”
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