Lireas Holdings

Lireas is a 51% subsidiary of Hannover Re Africa. Via its shareholding in various underwriting agencies and specialist insurers, the Lireas Group provides Hannover Re Africa with access to direct business which is not usually accessible to a traditional reinsurer. In addition to profitable reinsurance, the Lireas investments provide its shareholders with good investment returns. Lireas has been investing in underwriting managers for almost 20 years and currently invests in 14 underwriting managers and 2 specialist insurers.

One of the strategic goals of the Hannover Re Group, and Lireas specifically, is to embrace the spirit of the Financial Sector Charter, viewing BEE as a financial imperative. As a foreign owned reinsurer, Hannover Re was exempt from the ownership component of the Financial Sector Charter. However, its investment in Lireas was viewed by Hannover as an opportunity for Hannover Re to contribute in a meaningful way to BEE, and thereby providing the underlying Lireas investments with empowerment status. With full support of its German parent, Hannover Re Africa sold 49% of Lireas at fair value to Mahogany Capital. The added benefit of this empowerment shareholding will allow the Lireas investments to strengthen their position in the South African Insurance Market.