Africa Re gets outlook revised to positive by S&P

S&P Global Ratings has revised the outlook of the financial rating of the African Reinsurance Corporation (Africa Re) from “Stable” to “Positive” and affirmed its ‘A-‘ global scale financial strength ratings.

The rating agency continues to consider Africa Re as a company that is “well placed to maintain leading position in the African reinsurance market with sustainable robust operating performance for the next two years”. Africa Re’s subsidiary, African Reinsurance Corp. (South Africa) Ltd., benefiting from a parental guarantee, also received the same ratings.

According to the rating agency, “Africa Re maintains a market leading position in the region supported by its geographic and product diversification in African countries. This diversification cushions the effects of weak economic conditions in most of its markets of operation.” The rating agency also referred to Africa Re’s “robust underwriting for the third quarter of 2024”, quoting Africa Re’s combined ratio of 89 percent and net income of $131 million through the third quarter of 2024.

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Corneille Karekezi, group MD/CEO of Africa Re, while commenting on the positive outlook revision, said, “This is a significant milestone and a testament to the resilience of the Corporation despite operating in a volatile business environment exposed to significant macroeconomic headwinds especially currency risks as a US dollar reporting entity, while writing most of its business in local African currencies. We will continue to maintain our strategic orientation geared towards product and geographical diversification. ”

Africa Re is Africa’s premier reinsurance company headquartered in Lagos, Nigeria, and leader in premium income volume, financial strength ratings and customer service.

Africa Re’s 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.

Africa Re offers a unique value proposition to its cedants across Africa and in selected markets of the Middle East, Asia and Brazil, backed by a diverse pool of talents and expertise, unique market knowledge, strong financial ratings (A / Stable by AM Best and A – / Positive by S&P), privileged access to African markets and excellent customer service.

Africa Re broad-based shareholding is made of 42 African member States, the African Development Bank, more than 113 African insurers and reinsurers, and 3 global leading insurance groups.

Africa Re market coverage is made through nine regional and representative offices located in key African cities (Lagos, Casablanca, Abidjan, Nairobi, Mauritius, Cairo, Addis Ababa, Khartoum and Kampala) and three fully owned subsidiaries in South Africa (Africa Re SA), Cairo Free Zone (Africa Retakaful Company) and Dubai (Underwriting Management Agency).