Our Products

Engineering Capital.
Four Products.

Each instrument is precisely engineered to transform a structural capital constraint into a measurable financial advantage - backed by the world's leading Tier-1 reinsurers.

01
Loan Enablement

Credit Protection Policy

Designed for financial institutions seeking to expand lending capacity without proportional increases in regulatory capital. Our Credit Protection Policy transfers the credit risk of a loan portfolio - or specific high-value exposures - to internationally-rated reinsurers, directly reducing the capital reserves a lender must hold against those positions.

The result: lenders unlock the capacity to extend credit to previously constrained borrowers at lower cost, while maintaining full regulatory compliance.

Capital Unlocking Benefits
  • Reduces regulatory capital reserve requirements against protected loan portfolios
  • Enables expansion of lending to higher-risk or previously excluded borrower segments
  • Lowers the effective cost of credit - making borrowing more accessible
  • Protects lender balance sheets against systemic default events
  • Satisfies IFC, World Bank, and commercial bank credit covenants
Enquire About This Instrument
Credit Protection Policy - financial shield protecting loan portfolios
Loan Enablement
Technical Specification
Primary Beneficiary
Banks, DFIs, MFIs, Credit Funds
Core Mechanism
Credit risk transfer to internationally-rated reinsurers
Capital Impact
20-40% reduction in capital reserves against protected portfolios
Capacity
No upper limit via reinsurance panel
Reinsurance Backing
Madison Insurance
Documentation
Satisfies IFC, World Bank, and commercial bank due diligence
Regulatory Standard
IRA Kenya licensed · Insurance Act (CAP 487) compliant
Application
Individual exposures or full portfolio protection structures
02
Project Finance

Performance Security Bonds

Reframed from a compliance necessity into a powerful capital unlocking instrument. Performance Security Bonds guarantee a contractor's or supplier's obligations to a project owner - replacing cash-collateralised guarantees with insurance-backed instruments that free up working capital for deployment into the project itself.

Backed by Tier-1 reinsurers, our bonds satisfy the most demanding international procurement standards, enabling contractors to bid on - and execute - projects that would otherwise exceed their capital capacity.

Capital Unlocking Benefits
  • Replaces large cash deposits tied up as collateral - freeing working capital
  • Enables bidding on capital-intensive infrastructure contracts up to USD 100M+
  • Improves financing terms by reducing perceived contractor risk
  • Accepted by international procurement authorities and project financiers
  • Scales with project size - no upper capacity limit via reinsurance
Enquire About This Instrument
Performance Security Bonds - East African infrastructure project
Project Finance
Technical Specification
Primary Beneficiary
Contractors, Developers, Suppliers, JV Partners
Bond Types
Performance · Retention · Maintenance · Warranty Bonds
Capital Impact
100% replacement of cash collateral with insurance-backed instrument
Capacity
USD 50M+ per single project via reinsurance backing
Reinsurance Backing
Madison Insurance
Accepted By
Government agencies, IFIs, Multinational procurement bodies
Documentation
International surety standards
Tenor
Project duration + defects liability period
03
Mobilisation Capital

Advance Payment Guarantees

Transforms the standard obligation to provide advance payment protection into a mobilisation capital engine. When a project owner advances funds to a contractor for mobilisation, an Advance Payment Guarantee protects the owner against misuse - while enabling the contractor to receive that advance without deploying their own cash as counter-collateral.

The result is immediate project mobilisation liquidity, secured by our Tier-1 reinsurers, without depleting the contractor's operating reserves.

Capital Unlocking Benefits
  • Enables contractors to receive advance payments without cash counter-collateral
  • Provides immediate project mobilisation capital for materials and equipment
  • Protects project owners against advance payment misuse or contractor default
  • Optimises contractor operational balance sheets from day one
  • Reduces time-to-mobilisation, accelerating project delivery
Enquire About This Instrument
Advance Payment Guarantees - capital mobilisation
Mobilisation Capital
Technical Specification
Primary Beneficiary
Contractors, Suppliers, Project Developers
Protection For
Project owners advancing mobilisation payments
Capital Impact
Full advance received without cash counter-collateral deployment
Typical Advance %
10-20% of contract value (varies by contract)
Reinsurance Backing
Madison Insurance
Repayment Mechanism
Automatically reduces as advance is recovered from interim certificates
Documentation
International surety standards
Accepted By
Government, IFIs, PPP project sponsors globally
04
Tender Access

Bid Bonds

Strategic growth accelerators that unlock access to high-value tender opportunities. Bid Bonds guarantee a tenderer's commitment to accept a contract if awarded, protecting the project owner against abandonment - while shifting the entire financial burden of tender security away from the bidder's cash reserves.

By replacing cash tender deposits with insurance-backed instruments, contractors can simultaneously participate in multiple large tenders, achieving a scale of market participation simply not possible with cash-constrained bidding strategies.

Capital Unlocking Benefits
  • Eliminates cash tender deposits - preserving liquidity for operations
  • Enables simultaneous participation in multiple large-value tenders
  • Unlocks access to USD 100M+ government and PPP procurement
  • Protects internal cash flow throughout the often lengthy procurement cycle
  • Accepted by all major government and international procurement bodies
Enquire About This Instrument
Bid Bonds - tender security and capital preservation
Tender Access
48-72hr issuance
Technical Specification
Primary Beneficiary
Contractors, Suppliers, Service Firms, Consortia
Protection For
Procuring entity against tender abandonment
Capital Impact
Zero cash deposit required - full tender security via insurance
Typical Bond Value
1-5% of contract value (per procurement rules)
Reinsurance Backing
Madison Insurance
Tenor
Validity of tender + award period (typically 90-180 days)
Issued In
48-72 hours from receipt of complete documentation
Accepted By
PPRA Kenya · All government MDAs · IFI procurement bodies
The Capital Backbone

The Reinsurance Engine

Reinsurance is the mechanism that transforms Lotan from a local intermediary into a global capital connector. Every structure we engineer is anchored to elite Tier-1 international reinsurers - translating regional risk into internationally bankable, credit-committee-ready documentation.

  • - Unlimited capacity: no risk too large for our reinsurance panel
  • - Competitive pricing through multi-underwriter market access
  • - Documentation satisfying World Bank, IFC, and commercial bank standards
Madison Insurance
Exclusive Reinsurance Partner

Reinsurance Partner · USD 40B+ in Capital Unlocked

Real-World Application

Capital Unlocking Scenarios

How our four products translate into measurable capital outcomes for real enterprises.

Infrastructure Finance
USD 50M Project Bond

Local insurer capacity insufficient to cover a USD 50M infrastructure bond requirement. Lotan's reinsurance access enables full coverage - unlocking the entire project capital.

> USD 50M in project capital unlocked
Bank Lending Expansion
40% Lending Scale-Up

Credit protection backed by international reinsurers reduces a bank's capital reserve requirements, enabling a 40% expansion in lending volume without proportional new capital injection.

> 40% more lending capacity deployed
Contractor Scale-Up
10x Revenue Scale Potential

Reinsurance-backed bid and performance bonds enable a mid-size contractor to simultaneously bid on multiple USD 100M+ government tenders - a scale of participation previously impossible with cash-constrained bidding.

> 10x revenue scale potential unlocked
Trade Finance
Cross-Border Supply Chain

Trade credit risk too high for local market acceptance. Internationally-backed trade credit insurance enables access to global supply chains and export credit facilities previously beyond reach.

> Access to global supply chain capital
Competitive Architecture

Lotan vs. Bancassurance

Our clients unlock 20-40% more capital than through standard bancassurance channels. Here is the structural reason why.

Dimension Bancassurance Lotan Insurance
Primary GoalInsurance as a profit centreInsurance as a capital unlocking instrument
Cost Structure30-50% commissions raise capital costCompetitive rates maximise capital efficiency
FlexibilityBundled products limit financial optimisationCustomised solutions enabling financial engineering
TransparencyOpacity prevents confident financial planningFull transparency enabling strategic capital decisions
Net Capital UnlockedSuboptimal structures, higher costs20-40% more capital through superior architecture
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