Africa Re sees net profit climb 32.5% to $22.5m in Q1’25

The African Reinsurance Corporation has reported an overall net profit for Q1 2025 of $22.5 million, marking an increase of 32.5% compared to a profit of $16.9 million achieved in the same period of 2024.

According to the firm, the net income increase was driven by an improvement in underwriting profit, coupled with a higher investment income and a moderate decrease in foreign currency loss.

Africa Re also recorded gross written premium income of $288 million for Q1 2025, up 13.7% from the $253 million in Q1 2024.

The firm stated that this was mainly due to successful marketing efforts, strong reinsurance demand in key markets, and the lower depreciation of African currencies in which most of its African business portfolio is denominated.

“However, global trade wars and ongoing real active wars in Ukraine, Gaza, Sudan and other pockets of instability in Africa continue to dampen the benefits of a moderate economic growth witnessed by some countries in Africa,” Africa Re added.

Meanwhile, Africa Re’s net underwriting result for Q1 2025 closed at $ 13.2 million, which marked an increase of 22.4% compared to $10.8 million in Q1 2024.

However, Africa Re’s net incurred claims rose from $91 million in Q1 2024 to $125 million in Q1 2025. As a result, the firm’s net combined ratio increased to 93.60% at the end of Q1 2025, up from 93.15% during the same period in 2024.

Despite this, Africa Re’s investment portfolio generated an income of $21.8 million in Q1 2025, reflecting a 6.7% increase compared to the $20.48 million recorded in Q1 2024.

This positive investment performance was reportedly driven by higher interest income from fixed-income instruments.

Group MD/CEO of Africa Re, Dr. Corneille Karekezi, commented, “We are pleased to report a strong first quarter 2025 performance, which reflects our expanding business portfolio and volume in diverse markets across Africa and beyond. Our disciplined underwriting, effective risk management, and prudent investment strategies have been key to our success.

“In an unstable global environment, we continue to deliver value to our clients and shareholders. Our interim results showcase the strength and resilience of our business model, and we are confident in our ability to seize every opportunity in our core markets and to maintain this momentum throughout the year 2025.”

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