Klapton Re has secured regulatory accreditation to write reinsurance business in China, marking a bold expansion into the world's fastest-growing reinsurance market
The Zambian firm, which holds 86% market share in its home country, however, faces entrenched competition from global giants.
The approval, granted just weeks before Klapton Re's scheduled March 24 listing on the Lusaka Securities Exchange, positions the reinsurer to tap a market that industry leaders project will become the world's second-largest in the coming decade.
Thierry Leger, chief executive of reinsurance giant SCOR, has said he is "convinced that the Chinese reinsurance market will become No 2 in the world in the next 10 years."
Klapton Re's revenue surged from K1 billion in 2023 to K2.9 billion in 2024, filings show. The company holds a Caa1 rating from Moody's and will become the only Moody's-rated firm on the Lusaka exchange when it lists.
Established in 2020 as a natural evolution of Klapton Insurance Company, the Lusaka-based reinsurer operates under the mission "Africa Underwriting the World," deploying African capital into global risk.
Chief executive Kudzai Bingepinge (pictured above) has emphasized the company's focus on discipline and sustainability, principles that align with what Klapton Re described as China's values of credibility, speed and long-term relationships.
The firm currently supports nearly 100 insurers globally with treaty schemes, mainly across Africa and Southeast Asia, offering products ranging from traditional casualty, fire and motor to specialized liability.
The China entry comes as the country's property reinsurance market expands rapidly, with ceded premiums surpassing ¥100 billion for the first time in a half-year period. Former Swiss Re chief executive Christian Mumenthaler has projected that premiums in China's insurance market "will double in 10 years" amid robust economic growth.
Chinese insurers have been focusing on product innovation to address climate change and emerging risks, creating opportunities for reinsurers with solutions-driven approaches.
Klapton Re faces formidable competition from established players. China Reinsurance Group, Asia's largest reinsurer and a top-10 global player, earned ¥46 billion in property and casualty reinsurance in 2024 alone.
Major international reinsurers including Munich Re, Hannover Re, Swiss Re and Everest Group have all recently committed to pushing for further growth in China and the wider Asia region.
China has expanded reinsurance capacity by creating an environment that favors businesses with operations based in China rather than external underwriters. The Shanghai International Reinsurance Registration and Trading Center allows both domestic and foreign reinsurance company branches to establish operations centers in Shanghai.
Foreign insurance companies applying for establishment in China must meet stringent requirements including total assets of not less than US$5 billion at the end of the year before application.
