Home Finance Guarantors Africa Reinsurance Limited
- HFGARe

- is a Limited by Guarantee Company (LBG) established in Mauritius. This means that the profits or capital of the company cannot be distributed to directors or members, but must remain within the Company.

- has an A+ (MU) rating from GCR.

HFGA is the sole member company of HFGARe.

HFGA raises the capital required for HFGARe. HFGA was created by Housing for HIV NPC in South Africa, and it too has committed significant resources to HFGARe.

HFGARe facilitates and provides access to housing finance for lower and middle income families in Africa. It does this through reinsurance or retrocession arrangements with insurers in African countries, through the introduction and implementation of a Collateral Replacement Indemnity, which is a cover of last resort to lenders that make home loans available to this market segment.

HFGARe covers reinsurers or insurers that insure banks against defined loss, on home loans to credit worthy middle and lower income borrowers. There are stringent terms and conditions to both loans and insurance, and acceptable and robust risk management processes have been instituted. Lenders buy collateral replacement insurance from local insurance companies, which lay off some if not most of the risk to HFGARe.

They effectively swap assumed risk for the insurance premium, which in turn provides a platform for affordable, available home ownership finance.