A portfolio restructure by Managers of African Aviation and Energy Pools has pushed up the operating results of the two businesses in the 2023 full year performance.
Data on the performance card shows that while African Aviation Poll moved its operating result to $863,911 in 2023 from $576,574 in 2022, African Energy Poll grew its operating profit to $10.22 million from $3.78 million in 2022.
Though the turnaround strategy affected turnover, managers of the pools said restructuring the portfolio was necessary to cope with challenges in the operating environment.
“The Aviation Pool Managers embarked on a turnaround strategy to address past profitability challenges encountered by the African Aviation Pool due largely to unfavorable global market conditions, according to Africa Reinsurance Corporation (Africa Re), mangers of the pool.
Giving report of the Pool performance at the recently concluded African Insurance Organisation (AIO) Conference held in Namibia, the Africa Re said the efforts continue to reflect positively on the results as illustrated in the profit recorded in 2023.
“However, the stricter risk selection also resulted in a drop in premium income.”
It noted that the African Aviation Pool witnessed a reduction in premium income to $730,515 in 2023 from $1,289,856 in 2022, as a result of deliberate efforts to streamline the portfolio for profitability.
“The operating result improved to $863,911 in 2023 from $576,574”, while membership remained stable at 52 in 2023, with a subscribed capacity of $8.11 million.
“The gross underwriting capacity was maintained at $17.5 million.”
“As reflected in the results, measures taken by the Pool Managers to turn around the fortunes of the Pool continue to yield fruits. However, it is important that members increase their support to the Pool to enable it grow profitably as the turnover remains small.”
On African Energy Pool, the report shows that in 2023, a record 6.5 percent reduction in premium income to $27.13 million, up from $29.03 million in 2022.
This is as operating result improved significantly to $10.22 million from $3.78 million in 2022.
“Membership remained stable at 51 in 2023, with a subscribed capacity of $8.86 million, while the gross underwriting capacity was also maintained at $90 million.”
“As at 31st December 2023, the Members’ account stood at $38.92 million, representing 35.6 percent increase from $28.70 million in 2022.
The report also stated that the Pool Managers look forward to receiving more support from members in order to achieve sustained profitable growth of the African Pools.
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