NITF procures reinsurance cover for agriculture insurance

• Hannover Re and Swiss Re take 90% share

State-owned National Insurance Trust Fund has just concluded the procurement of a reinsurance program for its agricultural insurance schemes. 

Two global giants, Hannover Re (50%) and Swiss Re (40%), have together accepted a 90% share of the program, with three other global reinsurers sharing the balance 10%. The placement was made through J.B. Boda & Co (S) Ltd., a leading reinsurance broker, selected after a competitive procurement process.

This reinsurance program will provide support to agricultural insurance schemes funded by NITF including the recently launched National Agricultural Loan Protection Scheme. The cover has been arranged on a stop loss basis which is typically the method adopted to obtain reinsurance for agricultural insurance.

NITF Chairman Manjula de Silva commented: “NITF is delighted to welcome Hannover Re and Swiss Re to its network of reinsurers which already includes the likes of Munich Re and Allianz SE.” 

NITF CEO Sanath de Silva added: “Having the backing of strong reinsurers will supplement the financial strength and stability of NITF to withstand external shocks we have to deal with due to volatile climatic conditions.”

NITF is rated AA-(lka) by Fitch Rating and is the fourth largest contributor to the Government Treasury among State-Owned Enterprises.