Africa Re’s GWP income climbs to $558.74m, net CoR hits 87.54%

The African Reinsurance Corporation (Africa Re) posted a gross written premium (GWP) income of US $558.74 million at the end of the second quarter of 2024, representing a 5.56% increase from the US $529.33 million figure that was reported in the same period last year under IFRS 4.

According to the firm, this notable increase was due to positive pricing momentum and moderate economic growth witnessed by most African countries despite continued challenges posed by ongoing geopolitical tensions, extreme weather conditions, fiscal policy tightening, inflationary pressures, as well as high levels of sovereign debt, and depreciation of major currencies of the company’s revenues.

Moreover, Africa Re also posted a net underwriting result of US $54.04 million for the period, marking a 69.03% increase from the US $31.97 million figure that the firm reported at the end of June 2023 under IFRS 4.

The organisation’s net combined ratio under IFRS 4 at the end of the period stood at 87.54%, compared to 91.52% from the same period last year.

In addition, Africa Re’s overall net income for the period stood at US $85.09 million, a substantial improvement of 75.42% compared to US $48.51 million from the prior year period.

Moving towards investment, Africa Re’s investment portfolio reported an income of US$ 42.02 million, translating to an overall increase of 21.66% compared to US $34.54 million, that was recorded in the prior year.

Africa Re explained that the performance was mainly driven by higher interest income from cash and other fixed-income instruments as well as stable returns from other asset classes.

Africa Re Group Managing Director / Chief Executive Officer, Dr. Corneille KAREKEZI commented: ”I am pleased with the results despite the challenging macroeconomic environment in our core markets. Africa Re will continue to monitor these developments especially the changes in exchange rate regimes and recent volatility in the global financial markets.

“I am optimistic that barring any fiscal, monetary, structural and industry unforeseen shocks, we are on track to surpass our targets for 2024. We will continue to deploy strategic interventions in our underwriting, investment and operational activities to maximize our returns whilst fulfilling our mandate to support the economic development of Africa.”

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