Financials

<h2 style="text-align: justify;"><span style="font-size: 12pt;">Q1. Could you start by briefly introducing your professional background, focusing on your expertise in the sector?</span></h2><p style="text-align: justify;">I have a professional degree in human resources. I have worked in sales in several organizations. A local company then recruited me as a salesperson. To offer the best services to my clients, I worked in the insurance field and developed commercial strategies by following training courses and being mentored by a general manager of an insurance company, who was also an insurance consultant.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q2. How are insurers leveraging data analytics to create hyper-personalized insurance products? Are these strategies resulting in improved retention and cross-selling ratios?</span></h2><p style="text-align: justify;">Insurers use data analytics to create hyper-personalized insurance products by collecting information from various sources (behavior, customer history, customer needs) and applying predictive models to finely segment their customers. This allows them to offer tailor-made, dynamic offers adapted to each customer's specific needs. These strategies significantly improve retention (thanks to more relevant offers) and cross-selling (anticipating future needs), with measurable gains in loyalty and commercial performance.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q3. What is the estimated size of the integrated insurance market in Sub-Saharan Africa, and how is it expected to grow over the next 3-5 years?</span></h2><p style="text-align: justify;">Insurers are using data analytics to create hyper-personalized insurance products by collecting information from various sources and applying predictive models to finely segment their customers. This allows them to offer tailored, dynamic offers tailored to each customer's specific needs. These strategies significantly improve retention (through more relevant offers) and cross-selling (by anticipating future needs), with measurable gains in loyalty and sales performance.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q4. What types of green insurance products are gaining traction in African and emerging markets?</span></h2><p style="text-align: justify;">In African and emerging markets, green insurance products are gaining importance in response to climate challenges, the energy transition, and societal expectations. The most rapidly developing product types are:</p><p style="text-align: justify;"><strong>Renewable Energy Insurance</strong></p><p style="text-align: justify;">Covering solar, wind, and hydroelectric infrastructure against natural, technical, or financial risks.</p><p style="text-align: justify;">Popular in Kenya, Nigeria, and South Africa, where investments in rural solar are growing.</p><p style="text-align: justify;"><strong>Index-Based Weather Insurance (Microinsurance)</strong></p><p style="text-align: justify;">Designed for vulnerable farmers, this automatically reimburses losses related to drought or flooding based on weather indices.</p><p style="text-align: justify;"><strong>Insurance for Electric and Clean Vehicles</strong></p><p style="text-align: justify;">There are slow beginnings, but growth is expected with the rise of electric motorcycles and cars (e.g., Rwanda, Ghana).</p><p style="text-align: justify;">Favorable pricing for users of green vehicles.</p><p style="text-align: justify;"><strong>Insurance Products incorporating ESG criteria</strong></p><p style="text-align: justify;">Some companies are beginning to integrate environmental, social, and governance criteria into their offerings or investment selection.</p><p style="text-align: justify;"><strong>Eco-responsible home insurance</strong></p><p style="text-align: justify;">Reduced pricing or specific guarantees for eco-designed or low-energy buildings (still in their infancy in Africa but developing in urban areas).</p><p style="text-align: justify;">NGOs, development agencies, or insurance fintechs often support these green products, which facilitate their deployment among rural or unbanked populations.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q5. How do evolving solvency regulations (e.g., Solvency II equivalents in Africa) affect insurers' capital adequacy ratios and investment strategy?</span></h2><p style="text-align: justify;">The evolution of solvency regulations in Africa, inspired by Solvency II (such as the RBC model), requires insurers to better align their capital with the real risks they bear. This strengthens capital adequacy ratios, better risk management, and reorients investments towards less volatile and better-rated assets. These rules also encourage insurers to adopt a more cautious strategy and diversify their portfolios to comply with regulatory requirements.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q6. What trends are emerging in cross-border consolidation among African insurers, and how are these shaping regional insurance ecosystems and regulatory alignment?</span></h2><p style="text-align: justify;">Cross-border consolidation among African insurers is accelerating, with groups seeking to expand their regional presence to pool risks, gain efficiencies, and capture new markets. These dynamic fosters the creation of integrated insurance ecosystems at the sub-regional level (e.g., ECOWAS, CEMAC) while pushing for regulatory alignment between countries. Authorities are gradually adapting their frameworks to harmonize supervision, facilitate cross-border operations, and strengthen sector stability.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q7. If you were an investor studying companies in the sector, what crucial question would you ask their management?</span></h2><p style="text-align: justify;">As an investor evaluating an insurance company operating in Africa, a crucial question to ask its management would be:</p><p style="text-align: justify;">How does your regional expansion strategy align with economic integration initiatives such as the African Continental Free Trade Area (AfCFTA), and how are you managing the challenges of regulatory harmonization and cross-border risk management?</p><p style="text-align: justify;">This question assesses the company's ability to:</p><ul style="text-align: justify;"><li>Exploit the opportunities offered by regional integration, including leveraging the AfCFTA to expand operations and access new markets</li><li>Manage regulatory complexities by navigating diverse legal environments and adapting to local requirements, while maintaining compliance and operational stability</li><li>Establishing effective cross-border risk management mechanisms, ensuring the company's resilience to the specific challenges of expanding on the African continent</li></ul><p style="text-align: justify;">By asking this question, the investor gains essential insights into the company's strategic vision, its ability to adapt to a rapidly changing environment, and its readiness to seize opportunities while mitigating the risks associated with regional expansion.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>