{"id":12338,"date":"2017-05-04T12:27:47","date_gmt":"2017-05-04T12:27:47","guid":{"rendered":"https:\/\/www.atidi.africa\/ati-continues-six-year-growth-trend-increases-impact-across-africa-insuring-investments-equal-to-an-average-1-of-member-countries-gdp-annually\/"},"modified":"2017-05-04T12:27:47","modified_gmt":"2017-05-04T12:27:47","slug":"ati-continues-six-year-growth-trend-increases-impact-across-africa-insuring-investments-equal-to-an-average-1-of-member-countries-gdp-annually","status":"publish","type":"post","link":"https:\/\/www.atidi.africa\/ja\/ati-continues-six-year-growth-trend-increases-impact-across-africa-insuring-investments-equal-to-an-average-1-of-member-countries-gdp-annually\/","title":{"rendered":"ATI continues six year growth trend & increases impact across Africa – insuring investments equal to an average 1% of member countries\u2019 GDP annually"},"content":{"rendered":"

NAIROBI, 4 May, 2017<\/strong>\u00a0\u2013\u00a0The African Trade Insurance Agency<\/a> (ATI<\/a>), the pan African investment and commercial risk insurance provider announced its 2016 results today. The multilateral institution posted record results for the sixth consecutive year. ATI has moved from being loss making as recently as 2011 to positing a positive net result of USD6.4 million in 2016 (on a comparable basis before setting aside technical reserves of USD4 million, representing a 36 percent increase over 2015. Among other factors, ATI attributes this success to stronger partnerships with African governments, who increasingly see the value of ATI to their growth and development objectives.<\/p>\n

\u201cWe are increasingly viewed as a strategic partner in Africa helping investors and our member countries attract vital foreign investments. Our impact is being felt and this is reflected in statistics that indicate we are insuring investments equivalent to approximately 1% of our member country\u2019s GDP every year. This is helping us attract new member countries,\u201d notes George Otieno, ATI\u2019s Chief Executive Officer.<\/p>\n

In 2016, ATI insured close to USD2 billion worth of trade and investments. The company continues to support important transactions. For example, ATI began negotiations in 2016 on a cover that closed in 2017 of a USD159 million loan from the African Development Bank to Ethiopian Airlines to help the carrier expand its fleet. ATI also underwrote the first deal in a non-member country in Angola in Q-1 2017, reflecting the company\u2019s new pan-African mandate.<\/p>\n

\u201cWhile we continue to strengthen our ties with member countries, at the same time we are also expanding our global collaboration with international insurers and financial institutions, enabling ATI to become the go-to investment insurer in Africa for both international and domestic transactions. In 2016, this international expansion included the accession to ATI membership of UK Export Finance (UKEF), the UK\u2019s national export credit agency,\u201d commented John Lentaigne, ATI\u2019s newly appointed Chief Underwriting<\/a> Officer.<\/p>\n

The growing demand for ATI\u2019s products can be partly explained by the fall-out from the end of the commodities super-cycle which has caused a weakened financial position in some African economies. The other factor is the tougher global regulatory environment which has made it difficult for international lenders to lend to sub-investment grade borrowers, which includes a majority of African countries.<\/p>\n

In this environment, ATI\u2019s products are being seen as a valuable tool to enable lenders to take sub-investment grade risk in Africa thus allowing governments and corporates to access more affordable financing. Importantly, in its role as an investment insurer of last resort, ATI is also providing the necessary comfort to support continued investments into the continent amidst a period of uncertainty.<\/p>\n

This demand is reflected in ATI\u2019s current regional expansion. The company now counts five of the six fastest growing African countries among its members including recent new members C\u00f4te d\u2019Ivoire, Ethiopia and Zimbabwe and is actively pursuing membership of other countries including Angola, Ghana, Nigeria and other ECOWAS countries.<\/p>\n

In August 2016, S&P Global Ratings reaffirmed for the 9th consecutive year ATI\u2019s \u2018A\u2019 rating though placing the company on a negative watch. This decision was based on delays experienced by ATI in recouping payments from member governments on sovereign claims. ATI has since taken several steps to resolve the pending claims reimbursements and in parallel, put in place a more efficient process for mitigating claims and ensuring quicker future sovereign claims recoveries.<\/p>\n

\u201cAs we have significantly grown and increased our business volumes in recent years, including counter-cyclical increases in exposures in a number of member states, it was inevitable that our Preferred Creditor Status would be tested. I believe that our response, which is ongoing, has been swift and thorough enough that it will effectively address these issues to the satisfaction of our clients, member governments and the ratings agency,\u201d added Mr Otieno.<\/p>\n

ATI is a multilateral investment insurer that was formed by COMESA member countries with the support of the World Bank in 2001. Since then, ATI has expanded to include countries in the ECOWAS region. The company provides a range of products that mitigate risks impeding the flow of investments and trade to and within Africa. As of 2016, ATI has supported USD25 billion worth of trade and investments into its member countries.<\/p>\n

KEY 2016 RESULTS<\/strong><\/p>\n

Volume of Business Supported Since Inception<\/p>\n

USD25 billion (+ 16%)<\/p>\n

Insured Trade & Investments (Gross Exposure<\/a>)
\nUSD1.9 billion (+ 16%)<\/p>\n

Gross Written Premium
\nUSD29.5 million (+ 27%)<\/p>\n

Net Earned Premium
\nUSD12 million (+ 20%)<\/p>\n

Shareholders\u2019 Capital
\nUSD202 million (+ 12%)<\/p>\n

Return on Equity
\n3.2% (+ 28%)<\/p>\n

Cost Ratio
\n35% (-30%)<\/p>\n

Profit
\nUSD6.4 million (+ 36%)
\nOn a comparable basis<\/p>\n

Rating (S&P)
\nA\/negative<\/p>\n","protected":false},"excerpt":{"rendered":"

NAIROBI, 4 May, 2017\u00a0\u2013\u00a0The Afr […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970],"tags":[],"class_list":["post-12338","post","type-post","status-publish","format-standard","hentry","category-970"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts\/12338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/comments?post=12338"}],"version-history":[{"count":0,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts\/12338\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/media?parent=12338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/categories?post=12338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/tags?post=12338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}