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ARC Ltd. releases Integrated Annual Report highlighting activities of Africa’s first sovereign parametric development insurer

SOURCE

African Risk Capacity

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Date

14/09/2022

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Press Release issued by ARC Ltd.

ARC Ltd. releases Integrated Annual Report highlighting activities of Africa’s first sovereign parametric development insurer

Year of impact revealed in Integrated Annual Report outlining policies, pay outs and partnerships which protect Africa’s most vulnerable against the vagaries of extreme weather

JOHANNESBURG, 14 SEPTEMBER 2022 – Over 18m individuals covered and 14 pay outs totalling US$59.6 million are two of the key highlights illustrating the impact of ARC Ltd. on the African continent and revealed in the organisation’s Integrated Annual Report.

The 2021 report differs from previous annual reports in that its compilation and narrative reflect the organisation’s efforts to represent performance, not only in terms of financial information, but also in terms of how value is created, delivered and governed, thereby providing a broader context for performance data and business operations.

ARC Ltd. CEO Lesley Ndlovu described 2021 as a “year of impact”; a year which reflected the organisation’s raison d’être and commitment to making a difference in the lives of the vulnerable populations ARC Ltd. covers.

The US$59.6 million pay-out was the highest amount since ARC Ltd.’s inception, he explained in the report. “As a development insurer, this is cause for celebration and reflects that the ARC mechanism saves lives, protects economies and secures development gains.”

Highlighting the need to expand ARC Ltd.’s influence, Board Chair Dr Abdoulie Janneh said in the report: “ARC Ltd., as an affiliate of the ARC Group, is one of the most highly regarded organisations in the industry on the African continent. Yet, despite the success of our drought and tropical cyclone insurance products we are not yet at scale.”

Despite the reported growth limitations, ARC Ltd. had emerged as an indisputable leader and credible development insurer in member state countries – reflected not only in the policy and pay out achievements of 2021 and its BBB+ Fitch and international ESG ratings, but also in the donor and partner messages of support for the organisation, including kFW Development Bank, the UK Foreign, Commonwealth and Development Office and the Swiss Agency for Development and Cooperation.

Thanking these partners in the Integrated Annual Report, Ndlovu concluded: “In the wake of accelerating global climate change, food insecurity and epidemics, there is growing relevance and urgent need for parametric insurance. There is no time to lose. ARC Ltd. must act now.”

To view the full report, click here.

Ends

For more information about ARC Group, or to arrange an interview, please contact Claire Lathe at claire@bigambitions.co.za.

About ARC Ltd.

The African Risk Capacity Limited (ARC Ltd.) is a financial affiliate of the African Risk Capacity (ARC) Group, a specialised agency of the African Union (AU), an initiative designed to improve current responses to climate-related food security emergencies.

ARC Ltd. is a mutual insurance facility comprised of its members, which have included Kenya, Mauritania, Niger, Senegal, Mali, Malawi, Gambia, Burkina Faso, Chad, Zimbabwe, Togo, Madagascar, and Zambia.

The membership also includes its capital contributors who have provided premium subsidies, including USAID, FCDO, SDC, KFW/BMZ, IFAD, AFDB, WFP and STARTNETWORK.

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