About ARC Ltd

Founded in 2014, the African Risk Capacity Limited (ARC Ltd) is a hybrid mutual insurer and financial affiliate of the African Risk Capacity Group.  The organisation provides parametric insurance services to AU Member States and farmer organisations, employing innovative financing mechanisms to pool disaster-related risk across Africa and transferring it to international risk markets. In so doing, it improves the continent’s response to climate-related disasters and contributes to resilience building and ultimately to food security. Efforts are ongoing to ensure the ARC product portfolio is reflective of the needs of Member States and provides progressive solutions to weather-related disasters.

ARC Ltd was established with a specific commercial mandate as a Class 2 mutual insurance company with seed capital funding. Its membership is by African Governments comprising of countries who have taken up a policy in any particular year, as well as capital contributors. It is seeded by the UK’s Foreign, Commonwealth & Development Office (FCDO), and Germany’s KfW through BMZ. It will eventually be wholly owned by African sovereigns.

ARC Ltd carries out commercial insurance functions of risk pooling and risk transfer in accordance with national regulations for parametric weather insurance in Bermuda (where it is located until such time that an equally favorable legal and regulatory regime exists in an AU Member State). By transferring the burden of natural disaster risks away from governments and their populations, the organisation facilitates a more deliberated response approach to disasters. It disburses financing to fund pre-approved contingency plans to respond rapidly and predictably to disasters.

To be the development partner of choice, spearheading innovative disaster risk management solutions for climate resilience in Africa.

To promote harmonised resilience solutions for protecting African lives and livelihoods vulnerable to natural disasters caused by climate change and other perils of importance to the continent.

ARC Ltd 2022 Highlights

ARC Ltd 2022 Impact


Annual Reports

ARC Ltd 2022 Annual Report (English)

ARC Ltd 2021 Annual Report (English)

ARC Ltd 2020 Annual Report (English)

Audited Financial Reports
Audited Financial Statements for the year ended December 31, 2020 (French)

Audited Financial Statements for the year ended December 31, 2019 (English)

Audited Financial Statements for the year ended December 31, 2019 (French)

Audited Financial Statements for the nine month period ended September 30, 2019

Audited Financial Statements for the year ended December 31, 2018

Audited Financial Statements for the period January to September 30, 2017

ESG Standards

ESG Standards Document


PAIA Manual Outline

Net-Zero Asset Owner Alliance Targets

In September 2021, we set a precedent when we became the first company in Africa to join the UN-convened Net-Zero Asset Owner Alliance (NZAOA). This alliance of insurers and reinsurers seeks to achieve net-zero greenhouse gas emissions for its investment portfolios by 2050.

As a company with a top ESG score, joining the alliance reaffirmed our commitment to accelerating the transitioning of our industry.

Members of the NZAOA are required to set intermediate targets – a minimum of three out of four categories –and to report on these annually.

In the run-up to COP28 in Dubai next month, we are pleased to release our Net Zero Targets. We have committed to the following:

Sub-portfolio Target:

Reducing the average weighted intensity of CO2 by 40% on our public traded corporate debt from 2021 to 2030.

Engagement Target:

Engaging with a total of 12 different Asset Owners and Asset Managers to reduce GHG emission on their portfolios. These engagements will happen between 2021 and 2025.

Climate Solution Investment Target:

Increasing investment in climate-solution-related investment by 10% between 2021 to 2025.

We believe the insurance industry has a crucial role to play in highlighting the impact of climate change, while also contributing to solutions. We are proud to be a leading African company in this regard.