Africa Finance Corporation Establishes Bermuda Captive Insurance Company

Africa Finance Corporation (AFC) has established AFC Captive Insurance Company Ltd., a wholly owned Bermuda subsidiary intended to support the organization's risk management and infrastructure financing activities across Africa.

According to an AFC announcement, the captive will be backed by up to $30 million in equity capital and will initially provide insurance coverage for loans AFC extends to its counterparties. AFC said the structure will allow it to retain and manage risk more efficiently while reducing its reliance on the commercial insurance market over time.

AFC Captive is licensed as a Class 2 insurer in Bermuda. According to AFC, the company may also provide insurance capacity to AFC affiliates and selected third parties, with as much as 20 percent of its underwriting capacity available for that business.

The captive is also expected to support AFC's efforts to develop risk-mitigation solutions for infrastructure investments. AFC said the subsidiary could eventually expand its insurance offerings to a broader group of third-party clients.

Samaila Zubairu, president and CEO of AFC, said the captive would enhance the organization's ability to manage risk, use capital more efficiently, and expand investment in infrastructure and industrial projects across Africa.

Wola Asase, AFC's deputy director and head of syndications, will manage the subsidiary as head of AFC Captive and serve as a director on its board. According to AFC, using insurance within its financing structure could help increase market capacity and support projects facing limited or costly external insurance options.

AFC reported that it holds an A3 long-term issuer rating from Moody's. S&P Global assigned AFC an "A" long-term and "A-1" short-term issuer credit rating with a positive outlook in January 2026. AFC said its captive will seek to develop its own investment-grade credit profile as it builds scale and operating capacity.

AFC was established in 2007 to finance and support infrastructure and industrial investments across Africa. The organization reported that it has invested more than $19 billion in 36 African countries since its formation.