By September 2024, Africa Reinsurance profit surged 74.19% to $131.43 million, with gross premiums up 8.99% to $879.05 million.
CEO Corneille Karekezi credited the growth to the company’s strong business model and favourable market conditions.
By the end of September 2024, Africa Reinsurance Corporation (Africa Re) reported a significant profit of $131.43 million, marking a 74.19% increase from the $75.45 million in the same period of 2023.
This growth was primarily driven by successful marketing efforts, positive pricing trends, and moderate economic conditions in Africa, despite global challenges such as geopolitical tensions, extreme weather, fiscal tightening, currency depreciation, and inflation.
Furthermore, Africa Re’s gross written premiums reached $879.05 million, reflecting an 8.99% increase from the previous year’s $806.55 million.
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CEO Corneille Karekezi attributed the company’s strong performance to its resilient business model, which was able to capture the benefits of favourable reinsurance market conditions and stronger global financial returns.
However, while the company saw an increase in gross incurred claims—rising to $436.78 million from $404.40 million in 2023—the net incurred claims increased more modestly to $391.29 million from $376.79 million.
The retrocessionaires’ share of these claims also rose from $27.60 million in Q3 2023 to $45.49 million in 2024.
In addition, net commissions and charges were up by 13.20%, reaching $191.71 million due to higher premiums.
As a result, the net combined ratio improved to 88.74% from 93.66% in the previous year, reflecting better operational efficiency.
Finally, the company saw a 59.40% increase in investment income, totalling $71.74 million, driven by higher interest from fixed-income investments.
Overall, Africa Re’s net profit of $131.43 million highlighted its continued resilience and success in the face of challenging global conditions.
