Capital Alliance Private Equity IV (CAPE IV), a private equity fund managed by African Capital Alliance (ACA), has acquired a 49% stake in Continental Reinsurance (C-Re), the largest private pan-African reinsurer outside of South Africa.

Meanwhile, following regulatory approval, Saham Finances, the insurance arm of Saham Group, has diluted their investment in C-Re Holding from 100% to 51%.

Dr Femi Oyetunji, Group MD of Continental Reinsurance, said: “This is an extremely positive move for our company and we are very pleased to have shareholders who share our determination to realise our vision for Africa.”

“The new structure will position Continental Reinsurance favorably to bolster our strategic objectives and strengthen what we have achieved over the past few years in terms of our pan-African foothold, expansionary plans and market positioning as the largest private pan-African reinsurer, outside of South Africa,” he said.

Established in 1985, and listed on the Nigerian Stock Exchange (NSE) in 2007, Continental-Re provides support to over 200 insurance companies in Africa.

It has operations in 44 African countries, with its main offices in Nigeria, Kenya, Cameroon, Côte d'Ivoire, Tunisia and Gaborone.

Continental-Re is one of a few reinsurance companies in Africa committed to sustainable business and corporate responsibility by signing up to the UN Principles for Sustainable Insurance.

Oyetunji commented that the new shareholding structure is a financial transaction only and Continental Reinsurance will continue business-as-usual.

“Given the new shareholding structure, there will be continued focus on our vision and strategy. There will be no change to our strong pan-African brand or underwriting philosophy, our board will remain independent and there will be no majority shareholding for any individual organisation,” he said.

African Capital Alliance (ACA) is an international investment firm operating in Sub-Saharan Africa, and the first institutional private equity fund manager to invest in Nigeria.

Since its formation in 1997, ACA has sponsored four private equity and one real estate fund which have, to date, achieved aggregate capital commitments of over $1b from investors.

ACA has strong on-the-ground presence, which combined with its track record, has attracted the interest of leading global investors from around the world.

To date, the firm has made more than 40 investments across a number of high-growth target sectors, including oil and gas, power, TMT, financial services, FMCG and business services.

It also has a history of successfully exiting investments and delivering strong returns to its investors.

The firm is currently investing out of CAPE IV, a private equity fund with a target size of $600m and CAPIC I, a $165m real estate fund.