If you missed our launch event last week, we are delighted to share the speech given by our CEO and Managing Director, Mr Webster Twaambo Jr., who provided background on Klapton Re, the investment being made into the Zambian economy, and our objectives to provide local reinsurance capacity.
THURSDAY 14th OCTOBER 2021
“A warm welcome to you all. And thank you for joining us today on this distinct occasion. It has been a while since a new entrant reinsurance company was launched in Zambia, more than five years to be specific. A special Zambian welcome to those who have travelled from outside Zambia.
Guest of Honour, I wish to begin by commending the New Dawn government for measures taken so far to reboot the economy. The tone from the top is clear about policy direction. It is about growth and creating a conducive environment for businesses to thrive. Indeed, there is no better time to invest in Zambia than now when we have renewed hope as a nation following the ascension to office by the new dawn government that has inspired a lot of confidence in the citizens. You will agree with me that everyone is upbeat about the economy and future of business in Zambia.
Further, we have noted your leadership role in the fight against the Covid-19 pandemic. I am happy to announce that all our employees are vaccinated. We challenge other players who have not done so to do the same, of course, voluntarily.
Distinguished invited guests, Klapton Re, is a multinational reinsurance company registered and licenced in The Republic of Zambia. We are grateful to the Pensions and Insurance Authority (PIA) and Zambia Development Agency (ZDA) for granting us the reinsurance and investment licences, respectively.
Our shareholders are from Israel and the United Kingdom. These are Klapton Management, SLA Consolidated Limited, and Shay Reches – who has joined us this evening, all the way from Israel. Klapton Re promoters have a rich history within the insurance and reinsurance market at the global level with a combined experience exceeding 50 years.
Ladies and Gentlemen, the shareholders have so far invested over K77 million in Klapton Re, way above the minimum capital requirements of K20 million. Further, the investors are committed to invest another K110 million-plus to realise the bigger goal of being a major reinsurance player in Africa. We must commend them for choosing Zambia to bring in such huge sums of investment. You will agree with me that pumping in so much investment at the height of the Covid-19 pandemic, slow down in the local economy is a demonstration of the shareholder’s long-term approach. Klapton Re is here for a lifetime.
Distinguished invited guests, Klapton Re, is well staffed. Inspired by the vision of becoming a preferred reinsurer in our chosen markets, the company has attracted some of the best talent available in the market. The management team is 100% local and has the right mix of skill and experience geared to actualise the great vision of the company. We have in-house expertise in all the critical functional areas, including underwriting, claims, finance, ICT, risk, and compliance.
Further, through our strategic partnerships, a hub network in Kenya, Dote d’Ivoire and Asia, reinsurance brokers, and cedants, we will be accepting business in Zambia, the rest of Africa, Asia, Central and Southern America.
Ladies and Gentlemen, Klapton Re is here to offer reinsurance solutions with the application of experience and knowledge through innovative underwriting and prudent risk management for the ultimate benefit of the client. We are here to enhance local capacity through facultative and treaty reinsurance arrangements with specificity to general insurance. We will take on risks that range from fire, engineering, energy, marine and aviation to specialised liability, casualty, and motor reinsurance. Our underwriting capacities go up to US$15 million for material damage and US$10 million for liability. The sub-classes will be provided in our corporate brochure.
Ladies and Gentlemen, as we enter the Zambian insurance market at a time when we have a new insurance act, which is pending operationalisation. We commend the PIA, IAZ and all stakeholders involved in the process of the enactment of the new law.
Of specific interest to reinsurance is the aspect of exhausting local capacity. It must concern all of us if over 50% of gross written premiums is externalised without consideration of local reinsurers. For this reason, Klapton Re is here to provide the much-needed local capacity. We want to appeal to local insurance companies to support this positive development of utilising local capacity. Further, as reinsurers, we would like to see the PIA enforce this requirement.
Guest of Honour, Ladies and Gentlemen, our unique value proposition will be evidenced in the distinct reinsurance solutions we bring to the market. Our customer service will be exceptional and professional. Further, we would like to demonstrate our unmatched claims settlement service in the industry.
I am proud to announce that Klapton Re has already invested over US$1million in the core insurance system called SICS NT, one of the best and widely used systems by leading reinsurers. We are confident that it will enable us to serve our clients efficiently and effectively. Being a data-driven organisation, this system will ensure that we build critical data that, over time, will enable Klapton Re, develop more innovative solutions for our clients.
Guest of Honour, Ladies and Gentlemen, the impact that Klapton Re will make is immense. Firstly, I am glad to announce that we are inheriting a huge book from the international market. The portfolio was previously written by Klapton insurance company. Thus, we will directly contribute to foreign currency inflows to a tune of above US$30 million within our first 12 months of operations. This will improve liquidity and contribute to the stabilisation of the Kwacha.
We project to have at least US$10 million in assets under management by the end of 2023. This will stimulate economic growth and aligns with the new dawn government focused on growing the economy.
Distinguished guests, ladies and gentlemen, the growth of Klapton will be driven by careful and effective investments management that. In addition to achieving good returns, we will also ensure the security of our shareholder and policyholder funds under management.
With customer experience, flexible solutions, expeditious claims settlement, long-term relationships, we want our customers to count on us. We will also collaborate with other reinsurance players within and outside Zambia in the quest of providing solutions to cendats for the ultimate benefit of insureds.
Good corporate governance and good corporate citizenship are at the core of how Klapton Re will operate. We are proud to state that we have a fully functional and diverse board that will ensure that Klapton Re is directed and managed in a manner that is consistent with good corporate governance and ethical guidelines.
We aim to ensure significance in showing good corporate citizenship through applying the triple “P” concept (people, planet and profits). We are keen to be involved in activities that promote environmental sustainability and the promotion of financial literacy among citizens.
Guest of Honour, Ladies and Gentlemen, Klapton Re is a member of the Insurer Association of Zambia (IAZ), African Insurance Organisation (AIO), Organisation of Eastern and Southern African Insurers (OESAI), and the Federation of Afro-Asian Insurers and Reinsurers (FAIR).
We are excited at this opportunity to bring to the market innovative solutions, differentiated client service and a dedicated focus on ensuring that claims are settled expeditiously.
Let me end with a quote from Iffco Tokio, “when you have insurance, you know that you are secured against any unforeseen events in life, and this gives you complete peace of mind”.
It is our call to players in our defined markets to place their reinsurance business with Klapton Re to achieve peace of mind. As our tag line goes, we are “here for you”.
God bless, I thank you.”