Africa Re Achieves Strong Underwriting Results

Africa Re has achieved strong underwriting results, with a significant increase in gross premium income.

In 2022, the company's gross premium income rose by 15% compared to the previous year. This impressive growth is a testament to Africa Re's ability to adapt to changing market conditions and meet the evolving needs of its clients.

Africa Re's strong underwriting results are a result of its diversified portfolio, which includes reinsurance and insurance business.

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Africa Re was born in the early 1970s as an idea to develop a local insurance and reinsurance market in developing countries. The first attempt to establish it was in Yaoundé, Cameroon on February 24, 1976.

The company's authorized capital was a significant US$15 million, shared between the African Development Bank and 36 member states of the Organization of African Unity. This marked a crucial step towards mobilizing local capital and supporting African economic development.

Africa Re started its activities in Accra, Ghana, before moving to Lagos, Nigeria a few months later.

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Africa Re was established in Yaoundé, Cameroon on February 24, 1976.

The company's authorized capital of $15 million was shared between the African Development Bank and 36 member states of the Organization of African Unity.

The goal was to create a reinsurance market and support African economic development, while also curbing the outflow of foreign currency from the continent.

Africa Re started its activities in Accra, Ghana, before moving to Lagos, Nigeria a few months later.

In 1980, the company opened its first regional office in Morocco, followed by Kenya in 1982 and Côte d'Ivoire in 1987.

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The Africa Re Foundation was established in 2018 to manage a fund for corporate social responsibility (CSR) projects. This fund was initially managed internally before being transferred to the new entity.

The foundation is based in Mauritius and has been operational since January 2019. It's responsible for managing the fund and ensuring the implementation of CSR projects.

The Board of Directors of the Africa Re Foundation consists of insurance professionals who ensure fair representation of all regions of the continent. They were chosen for this role to guarantee a diverse and inclusive approach.

The foundation's objectives are centered around the development of insurance on the continent. Here are some specific ways it works towards this goal:

Africa Re has shown impressive growth in its gross premium income, reaching $421 million in the first six months of 2021. This is a significant increase from previous periods.

The company's underwriting performance has also improved, with a strong net underwriting result of $79.5 million in Q3'24, marking a 100.82% year-over-year increase. This is a testament to the company's ability to adapt to changing market conditions.

Africa Re's gross written premium (GWP) income has been steadily increasing, reaching $558.74 million in the second quarter of 2024, a 5.56% increase from the same period last year. This growth is a positive sign for the company's future prospects.

The company's net combined ratio has also improved, with a net CoR of 87.54% in the second quarter of 2024, down from 93.66% in the same period last year. This reduction in costs will likely benefit the company's bottom line.

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Africa Re posted a solid underwriting result with a net combined ratio of 88.74% in Q3 '24, a significant improvement from 93.66% during the same period last year.

This impressive result led to a strong net underwriting profit of $79.5 million, a 100.82% increase from the previous year.

Africa Re's financial performance is a testament to their commitment to excellence and efficiency in the reinsurance industry.

The company's ability to deliver a solid underwriting result despite market fluctuations is a notable achievement and a positive trend for the industry.

Africa Re's net combined ratio of 88.74% in Q3 '24 is a clear indication of their focus on managing risks and optimizing their underwriting strategies.

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Allianz Group has acquired an 8% stake in Africa Reinsurance Corporation (Africa Re) for a total cash consideration of USD 81 million.

This significant investment will make Allianz one of the largest shareholders in Africa Re, opening up opportunities for both companies to work together and promote insurance penetration in the region.

The transaction will enable the two companies to jointly promote insurance penetration, which will likely have a positive impact on the African insurance market.

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Africa Specialty Risks has partnered with Africa Re on political risk and trade credit. They've entered into a partnership agreement to provide insurance through an Underwriting Authority Agreement.

The agreement brings in a $10 million multi-year capacity for risks in Africa and the Middle East. This is a significant move that will help businesses in the region.

Africa Specialty Risks and Africa Re have joined forces to offer a crucial service to businesses operating in Africa and the Middle East. This partnership will provide stability and security for companies looking to invest or trade in the region.

The partnership is a testament to the growing demand for specialized insurance services in Africa. It's a step in the right direction for businesses looking to expand their operations.

Africa Re is a well-established player in the African insurance market, and this partnership is a significant boost to its capabilities. Africa Specialty Risks brings its expertise in political risk and trade credit insurance to the table.

Gallagher Re is teaming up with Africa Re to address the protection gap in Africa.

This partnership aims to strengthen the financial resilience of African countries against various risks such as climate, crises, and disasters.

The initiative is called "Accelerating action through scalable risk transfer schemes" and offers a robust framework for addressing these risks.

Gallagher Re and Africa Re are working together to make insurance more accessible in Africa.

Africa Re will benefit from Gallagher Re's expertise in risk transfer schemes.

The partnership has the potential to promote insurance penetration in Africa.

Allianz Group's acquisition of an 8% stake in Africa Re may also contribute to this goal.

The cash consideration for the stake is USD 81 million.

Alesco Risk Management Services has been appointed by Africa Reinsurance Corporation to arrange a reinsurance facility for all international upstream energy insurance programs written from Equatorial Guinea.

This facility will have a significant impact on the energy industry in Equatorial Guinea, with a value of $3.5 billion.

The commission of the facility will largely be placed through Lloyd's, a well-established and reputable insurance market.

The partnership between Alesco and Africa Reinsurance Corporation will provide a vital service to the energy sector in Equatorial Guinea, enabling companies to manage their risks more effectively.

Alesco's expertise in risk management and insurance broking will be instrumental in arranging this facility, which will benefit the energy industry in the region.

Africa Re has a strong presence in Africa, but it's also expanding its reach into new regions. Africa Re has selected the Dubai International Financial Centre (DIFC) for its first office outside Africa, operating as Africa Re Underwriting Agency Limited.

This move marks an important milestone in Africa Re's Middle East expansion. Africa Re's focus is on the underwriting of proportional and non-proportional reinsurance business.

Africa Re's geographical organization is quite extensive, with a presence in multiple countries. Here's a breakdown of its regional offices:

Africa Re's geographical organization is quite impressive, with a presence in many African countries. The company has a Head office in Lagos, Nigeria.

Africa Re has a strong presence in South Africa, with a subsidiary, Africa Re South Africa, located in Johannesburg. The company also has a subsidiary, Africa Retakaful, in Cairo, Egypt, which focuses on Islamic reinsurance.

The company's regional offices are strategically located in key cities across Africa. There are six regional offices in Casablanca, Morocco; Abidjan, Côte d'Ivoire; Nairobi, Kenya; Lagos, Nigeria; Cairo, Egypt; and Ebene, Mauritius.

Africa Re also has a local office in Addis Ababa, Ethiopia, which helps strengthen the company's presence in East Africa. Additionally, the company has an underwriting representative in Kampala, Uganda, which allows it to tap into the Ugandan market.

Here's a breakdown of Africa Re's geographical organization:

Africa Re's international expansion is a key aspect of its growth strategy, driven by the segmentation of risks and their dispersion in space.

This approach has led to the company's presence in the African market, attracting foreign companies that wanted to gain a foothold in Africa.

In 2012, IRB Brasil Re became a shareholder of Africa Re, giving the company operator status in Brazil and the opportunity to expand its operations in Latin America.

Two new shareholders, Axa and Fairfax Financial Holdings, joined Africa Re in 2015, each taking a 7.15 percent stake.

Allianz acquired IRB Brasil's 8 percent stake in Africa Re in 2018, further solidifying the company's international presence.

Africa Reinsurance Group has selected the Dubai International Financial Centre (DIFC) for its first office outside Africa.

Africa Re will operate as Africa Re Underwriting Agency Limited in the Middle East.

The DIFC is a financial centre in the MEASA region.

Africa Re's focus is on the underwriting of proportional and non-proportional reinsurance.

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Africa Re is working with the World Bank and the federal government to improve insurance penetration levels among farmers in Nigeria through affordable insurance packages.

Africa Re has partnered with the International Finance Corporation (IFC) to develop Nigeria's agricultural insurance sector, specifically targeting small holder farmers.

Lunched by the Nigerian Commissioner for Insurance, Muhammed Kari on March 26th 2019, this agreement aims to assist insurers in Nigeria with innovative agricultural solutions.

Increased agricultural insurance penetration is expected to play a crucial role in boosting agricultural productivity and food security in Nigeria.

Africa Re has shown its commitment to helping the continent fight the COVID-19 pandemic by disbursing a significant sum of money to various institutions.

The company has allocated US$ 2,000,000 to the 8 African cities hosting Africa Re Offices, including Lagos, Johannesburg, Nairobi, Cairo, Abidjan, Casablanca, Mauritius, and Addis Ababa.

This financial support will be used for awareness campaigns, preventive measures, acquisition of medical equipment and personal protective equipment. Africa Re's mission is to stay together with its communities in the fight against the pandemic.

The funds will also be used to support the 41 associations of insurers in the 41 member States of Africa Re, with a total allocation of US$ 820,000. This is a significant contribution to the continent's efforts in fighting the pandemic.

Africa Re has also granted US$ 500,000 to the Africa Centre for Disease Control and Prevention, a public health agency of the African Union. This is a crucial step in strengthening the capacity and capability of Africa's public health institutions.

Here's a breakdown of the disbursement:

S&P Global Ratings has revised Africa Re's financial rating outlook to Positive from Stable, affirming its A- global scale financial strength ratings.

This is a significant milestone for Africa Re, which has maintained a market leading position in the region supported by its geographic and product diversification in African countries.

Africa Re's ability to sustain robust operating performance over the next two years has been highlighted by the rating agency, citing its strong position in the African reinsurance market.

The company's subsidiary, African Reinsurance Corp. (South Africa) Ltd., has also received the same ratings, benefiting from a parental guarantee.

Africa Re maintains a market leading position in the region supported by its geographic and product diversification in African countries, which cushions the effects of weak economic conditions in most of its markets of operation.

The rating agency 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.

This is 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.