ATI (www.ATI-aca.org) has demonstrated great resilience and posted 43% net profit growth and gross exposure of USD 6.3 billion in the middle of the COVID-19 Global pandemic; ATI increases its capital base and its footprint on the African continent thanks to the support of the African Development Bank (AfDB), the European Investment Bank (EIB) and the German Development Bank (KfW); As he marks his 20e Anniversary, the Nairobi-based pan-African insurer is committed to adopting a more robust, reliable and transformational strategic approach to its business offerings.
The African Trade Insurance Agency (ATI) held its 21st Annual general meeting (AGM) virtually, announcing its record results for the 9e consecutive year for the financial year 2020, which was marked by turbulence and uncertainties due to the global Covid-19 pandemic. As he marked his 20e Anniversary, ATI reaffirmed its role in economic transformation in Africa, ensuring efficient trade and investment, making the continent more resilient after Covid.
ATI overcame the first impacts of the Covid-19 crisis, managing both the short and medium term effects of the pandemic on its balance sheet. He ended the year with a net profit of USD 39.4 million and a gross exposure of USD 6.3 billion. the AGM also approved the dividend distribution plan for USD 9.9 million, representing an annual growth rate of 139% from 2019. This growth reflects ATIthe resilience of and the confidence of the board of directors in the underlying strength of the company.
Among the highlights of the 21st AGM were also the following:
- Record net profit of USD 39.4 million, an increase of 43% between 2019 and 2020;
- A record gross exposure of USD 6.3 billion, which represents only a slight decrease of 3% between 2019 and 2020;
- A record gross written bonus of USD 125.6 million, an increase of 12% between 2019 and 2020;
- A return on capital of 12.6% despite the 18% growth in equity;
- 3 new shareholders have joined (Niger, Togo and CESCE); and
- Maintenance of its A / stable rating by Standard & Poor’s and A3 / Stable by Moody’s
As ATI strives to be fully Pan-African, its membership base continues to grow, underpinned by its increased relevance and support from the African Development Bank (AfDB), European Investment Bank (EIB) and the German Development Bank (KfW). Angola, Burkina Faso, Cameroon, Chad, Egypt, Gabon, Mali and Senegal are at an advanced stage of finalizing membership, while additional funding has been secured for the ‘capital increase of certain existing members. With the increase in membership comes other benefits such as the increase in the number of ATIequity and investment income of, as well as the improvement of its credit rating of A / Stable by Moody’s and Standard & Poor’s.
The outgoing president of AGM, The Honorable Matia Kasaija, Ugandan Minister of Finance, Planning and Economic Development noted “ATI worked with finance ministries to help manage rising levels of debt by replicating costlier and riskier debt and replacing it with longer-term, affordable debt from top international commercial lenders. This not only improved the institutional framework for debt liability management, but also resulted in significant savings and lower debt ratios. This is in addition to the support offered to business entities that facilitate private sector development in ATI member countries.”
the CEO, Mr. Manuel Moses, commented “I am extremely proud of the twenty years of experience ATI has put in place credit and political risk insurance to support trade and investment in Africa. As we enter our third decade, ATI is committed to adopting a more robust, reliable and transformational strategic approach to its commercial offerings. We continue to be the de facto trade risk mitigation tool that propels intra-African trade in support of the AfCFTA. “
the AGM office confirmed the Hon. Kenneth Ofori-Atta, Minister of Finance and Economic Planning of the Republic of Ghana as the new President of the General Assembly. HE Dr Uzziel Ndagijimana, Minister of Finance and Economic Planning of the Republic of Rwanda was confirmed as Vice-President.
Distributed by APO Group on behalf of the African Trade Insurance Agency (ATI).
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About the African Commercial Insurance Agency:
ATI was founded in 2001 by African states to cover the trade and investment risks of companies doing business in Africa. ATI mainly provides political risk, credit insurance and surety insurance. Since its creation, ATI supported $ 66 billion in investment and trade in Africa. And for over a decade, ATI maintained an “A / Stable” rating for financial strength and counterparty credit by Standard & Poor’s, and in 2019, ATI has obtained an A3 / Stable rating from Moody’s.
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