ZEP RE

Set up officially in 1990 by the member States of COMESA (Common Market for Eastern and Southern Africa), ZEP RE started out its reinsurance underwritings on January 1, 2003 under the name of PTA Re, with its head office being located in Nairobi (Kenya).

Endowed with an authorized capital of 100 million USD and benefiting from a preferential market stretching from Djibouti to Mozambique and Angola, the new company is undergoing a steady development of its turnover which more than doubled since the posting of its first balance sheet in 2003.

Just like Cica Re in West Africa, ZEP RE brings in a substantive reinsurance capacity to the local insurers whom they value as an important technical support.

In an effort to face the growth of its premium volume and provide a proximity service to its customers, ZEP RE has established underwriting offices in Douala (Cameroon), Lusaka (Zambia) and Khartoum (Sudan).

There is no doubt that after its promising start, ZEP RE will soon become the reference reinsurer that Eastern Africa has been seeking for a long time.

Michael Gondwe	Rajni Varia
Chairman	Managing Director

Main financial highlights: 2004-2008

in USD

	2004	2005	2006	2007	2008
Gross written premiums	24 373 057	26 900 035	32 474 910	37 923 564	45 986 500
Written premiums net of reinsurance	18 834 065	19 520 505	25 163 239	29 536 935	36 892 542
Net earned premiums	19 054 067	19 098 228	23 759 751	27 720 241	34 894 101
Net incurred losses	9 943 515	10 181 593	14 562 673	16 927 172	18 479 657
Net loss ratio	52.19%	53.30%	61.30%	61.06%	52.96%
Management expenses • Overhead expenses • Commission expenses	6 309 688 1 781 027 4 528 661	7 089 892 1 822 216 5 267 676	8 145 314 2 098 537 6 046 777	9 683 269 2 649 034 7 034 235	12 043 556 3 295 040 8 748 516
Underwriting profit	2 357 652	1 729 418	979 383	971 684	4 187 865
Net result after tax	2 036 919	1 837 349	2 475 385	5 255 987	1 910 268

Evolution of premiums, losses, management expenses and results

in thousands USD in thousands USD

Turnover's evolution per class of business: 2004-2008

in thousands USD

	2004	2005	2006	2007	2008	2008 shares	2007/08 growth
Fire and accident	20 894	22 430	25 088	28 797	33 491	72.83%	16.30%
Marine	2 916	3 342	3 870	5 253	4 957	10.78%	-5.63%
Life	563	1 128	3 516	3 873	7 538	16.39%	94.63%
Total	24 373	26 900	32 474	37 923	45 986	100%	21.26%

Breakdown per class of business in 2008

Ratios' evolution 2004-2008

¹ Management expenses on written premiums

Thanks: We thank ZEP RE for their kind assistance in the conception of of this survey.