Nigeria Reinsurance Corporation was established under the Nigeria Reinsurance Corporation Act No. 49 of 1977. It commenced operations on January 1st, 1978 as Nigeria’s flag reinsurer, wholly owned by the Government of the Federal Republic of Nigeria.

The purpose for the establishment of the Corporation was to stem the outflow of funds in form of reinsurance premiums, by accepting legal cession of all local insurance policies and writing inward international reinsurance businesses.

The Corporation has grown from a gross premium income of N 22 million and a profitability ratio of 6.5% from 1978 to a gross premium income of N 3.1 billion and profitability ratio of 19.4% in 2005. The Asset base of the Corporation has also risen from N 18 million in 1978 to N3.7 billion in 2005. From the N1, 500,000 take off capital granted the Corporation by the Federal Government of Nigeria, it has today a paid up capital base of N 957 million through the recapitalization of profits. The Net Worth of the Corporation grew from N 4.9 million in 1978 to N 5 billion in 2005.

In line with the privatization policy of the Federal Government of Nigeria, the Corporation’s 51% equity was acquired in December 2002, by Reinsurance Acquisition Group - the Management buy out vehicle, while the Government retained 49% interest.

The Corporation is in the process of recapitalization and would soon have an increased capital base to consolidate its underwriting capacity and competitive edge.