Africa Re grows profit to $132m on market expansion, new business acquisition

The African Reinsurance Corporation (Africa Re) in the 2024 financial year recorded a Gross Written Premium of $ 1.214 billion, representing an annual growth of 9.76 percent compared to $ 1.106 billion recorded in 2023.

Just as the net underwriting profit rose to $ 87.343 million, the reinsurance giant realised a net profit after tax of $ 132.364 million.

This growth reflects the Corporation’s successful and sustained marketing efforts to expand existing business organically and acquire new business across product lines and locations, the African reinsurance giant said.

Corneille Karekezi, group MD / CEO, while commenting on the performance proudly reported: “We are pleased to report another year of strong performance, which reflects our growing footprint in diversified markets in Africa and other markets, disciplined underwriting approach, effective risk management strategies, and prudent investment practices.

Despite challenging market conditions, we have continued to deliver value to our clients and shareholders. Our results demonstrate the strength and resilience of our business model, and we are confident in our ability to maintain this momentum moving forward.

In 2024, the reinsurance market continued to strengthen, driven by robust demand, moderate economic growth in our markets, and improvement in premium rates, terms and conditions in response to the prior years’ low profitability.

“Without the depreciation of major currencies in her core markets, at constant exchange rates of 31 December 2023, the company would have achieved a Gross Written Premium of $ 1.278 billion at a growth rate of 15.55 percent.

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Africa Re achieved another strong underwriting performance in 2024 due to its underwriting discipline, better price adjustments and well-diversified portfolio despite the impact of some natural catastrophes, especially the unprecedented February and April floods in the UAE, Cyclone Belal in

Looking ahead, Africa Re remains optimistic about the reinsurance market, despite uncertainties surrounding global economic conditions, natural catastrophes, currency depreciation, geopolitical tensions and sovereign debt distress. The company is focused on maintaining its disciplined approach while capitalizing on emerging opportunities and navigating the market cycles”.

Corneille Karekezi further stated “2024 is another milestone year in our history based on both the top line and the bottom line. The Corporation remains grateful to its customers for continued trust and loyalty to the Africa Re brand and its unique value proposition for their protection over the last 49 years. This is a testament to the solid foundation of our founding fathers, dedication of our hard working colleagues and support of our strategic partners.”

The African Reinsurance Corporation (Africa Re) is a leading reinsurance company headquartered in Lagos (Nigeria). As a premier reinsurer of the African continent, it has one of the highest premium income volumes and the strongest financial strength ratings.

The mission of Africa Re 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.