The African Reinsurance Corporation (Africa Re) has recorded a net profit of $ 22.5 million at the end of first quarter 2025, translating to an increase of 32.5 percent compared to the profit of $16.9 million achieved in the same period of 2024.
The increase was driven by an increase in underwriting profit coupled with an increase in investment income and a moderate decrease in foreign currency (FX) loss.
Its Gross Written Premium Income stood $ 288 million translating to a 13.7 percent growth from the $ 253 million reported in the same period in 2024. This was mainly due to successful marketing efforts, strong reinsurance demand in key markets and relatively lower depreciation of African currencies in which most of the 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.
Corneille Karekezi, group MD/CEO of Africa Re, commented on the performance at the end of March 2025, saying, “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.”
In the first quarter of 2025, under IFRS 4, the Corporation recorded Gross Incurred Claims of $ 141 million, compared to $ 101 million in the previous year. The deterioration of 40.1 percent is attributable to the increase in claims experience across the business units of the Corporation, especially from the incurred but not reported (IBNR) claims component.
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During the period under review, based on IFRS 4, Net Commissions and Charges incurred by Africa Re amounted to $ 55 million, against $ 44 million recorded in the same period in 2024. This increase of 25.7 percent in net acquisition cost is explained by the increase in written premium volume.
As a result of the above, the Net Underwriting Result for Q1 2025 closed at $13.2 million, an increase of 22.4 percent compared to the underwriting result of $10.8 million reported at the end of March 2024 under IFRS 4.
Investment portfolio recorded an income of $21.8 million, translating to an increase of 6.7 percent compared to $20.48 million recorded in Q1 2024. The positive performance was driven by higher interest income from fixed-income instruments.
As a result of the above underwriting and investment performance, the Overall Net Profit for the first quarter of 2025 is $22.5 million, translating to an increase of 32.5 percent compared to the profit of $16.9 million achieved in the same period of 2024.
The increase was driven by an increase in underwriting profit coupled with an increase in investment income and a moderate decrease in foreign currency (FX) loss.
The African Reinsurance Corporation (Africa Re) is a leading reinsurance company headquartered in Lagos (Nigeria). As a premier reinsurer of the African continent, it boasts one of the top highest premium income volumes and the strongest financial strength ratings.
Africa Re mission is to foster the development of the insurance and reinsurance industry in Africa, to promote the growth of national, regional, and sub-regional insurance risk underwriting and retention capacities, and to support African economic development.
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