ICIEC has recently signed new reinsurance agreements with the Algerian Credit Insurance Company (CAGEX) – the national Export Credit Agency of Algeria.
Under the agreements, CAGEX will be the insurer, and the ICIEC, along with the CCR (Compagnie Centrale de Reassurance) will be the reinsurers with 45% quota share each. The said agreement will help to further businesses in Algeria since the expected portfolio will be in the range of USD 300 million from first year alone.
ICIEC and CAGEX have had a good business relationship for a long time under the Reinsurance Facultative Agreement signed in June 2006, the quota share treaty of CAGEX, which was signed in March 2008, and the Agency agreement signed in May 2009.
The latest agreements is a continuation of the ICIEC strategy to be the main partner of the ECAs in our member countries through providing them the required reinsurance and capacity building support in order to help these ECAs achieve their mandate and better serve their national clients.
Commenting on the recent agreement, ICIEC Chief Executive Officer, Mr. Oussama A. Kaissi said the reinsurance accord reached with CAGEX increases the financial stability of insurers by spreading risks, and facilitates placing large or unusual exposures with one company, thus reducing the time spent seeking insurance and eliminating the need for numerous policies to cover one exposure. “Without reinsurance, companies would find it much more difficult to compete internationally,” he added, “as reinsurance often also increases the amount of insurance the underlying insurer can sell.”