Review of legal cession rates in Gabon

Gabonese authorities have decided to revise legal cession rates downwards. Law 008/2017 of August 3, 2017, providing for the full increase of legal cession at 50% and the introduction of a 15% cession on reinsurance treaties, has been amended.

This law, subject of a controversy on the local market, triggered intense talks between the national insurance department (DNA), the Gobonese federation of insurance companies (FEGASA) and the national reinsurer SCG-Ré.

Talks have culminated in the adoption of the following legal cession rates:

  • Cession on non-life insurance policies has been brought back to its initial 15% rate
  • Cession on life insurance policies has been revised downwards going from 10% down to 8%
  • Legal cession on reinsurance treaties has been set at 5%

For the record, Gabon has applied, since 2012, a 15% legal cession on non-life direct insurance policies and 10% on those pertaining to life class of business.

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