Africa Re smashes billion-dollar milestone

Africa Re has introduced its preliminary monetary outcomes for the 12 months 2023, noting a historic milestone because it crosses the billion-dollar mark.

It reported a gross written premium (GWP) of $1.106 billion, marking an annual progress fee of 16.25%, which it says notably exceeded its forecasts for the 12 months. This progress was attributed to efficient advertising and marketing methods, new enterprise acquisitions, favorable market pricing, sturdy re’ demand, and average financial enlargement in key markets.

Adjusting for fixed change charges on the finish of 2022, the GWP might have reached $1.199 billion, reflecting a progress fee of practically 25.92%. The corporate attributed this to its underwriting self-discipline, strategic worth changes, and a diversified portfolio.

Vital claims from earthquakes in Türkiye and Morocco had been mitigated by the corporate’s threat administration methods, it claimed. This led to an improved web mixed ratio of 93.51% for 2023, down from 94.45% in 2022, and a web underwriting revenue of $54.806 million, up 33.68% from the earlier 12 months.

Africa Re additionally noticed a rise in funding and different revenue, totaling $73.873 million for 2023, in comparison with $13.124 million in 2022. This 462.88% enchancment mirrored a restoration from capital losses incurred within the earlier 12 months and advantages from a excessive rate of interest setting.

Group MD/CEO Dr Corneille Karekezi expressed delight within the firm’s achievements.

“As we report our monetary statements in US Greenback and the overwhelming majority of our enterprise is initially denominated in African currencies, rising the highest line has been tougher than we anticipated,” Karekezi mentioned. “Crossing that milestone is an affidavit of the resilience of the company in face of the continual depreciation and devaluation of our working African currencies in opposition to the US$ since 2015, in addition to different macroeconomic challenges together with geopolitical tensions, low financial progress and sovereign debt disaster.”

Africa Re reported a web revenue of $129.145 million for 2023, an enchancment of 444.16% in comparison with $23.733 million in 2022. The insurer’s capital place has strengthened, with a 6.95% progress in Shareholders’ Fund, restoring its return on common fairness to 12.59%, a rise from the common of 5.16% recorded between 2018 and 2022.

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