The African Reinsurance Corporation (Africa Re) recorded a Gross Written Premium Income of US$ 288 million for the first quarter of 2025, translating to a 13.7% growth from the US$ 253 million reported for the same period in 2024. This was mainly due to successful marketing efforts, strong reinsurance demand in key markets and relatively lower depreciation of African currencies in which most of African business portfolio is denominated. However, global trade wars and ongoing real active wars in Ukraine, Gaza, Sudan and other pockets of instability in Africa, continue to dampen the benefits of a moderate economic growth witnessed by some countries in Africa.
In the first quarter of 2025, under IFRS 4, the Corporation recorded Gross Incurred Claims of US$ 141 million, compared to US$ 101 million in the previous year. The deterioration of 40.1% is attributable to the increase in claims experience across the business units of the Corporation, especially from the incurred but not reported (IBNR) claims component. In the same period, the retrocessionaires’ share of incurred claims increased from US$ 9.9 million in Q1 2024 to US$ 16.1 million in Q1 2025. This resulted in Net Incurred Claims of US$ 125 million in the first quarter of 2025, up from US$ 91 million recorded in the same period of 2024.
During the period under review, based on IFRS 4, Net Commissions and Charges incurred by Africa Re amounted to US$ 55 million, against US$ 44 million recorded in the same period in 2024. This increase of 25.7% in net acquisition cost is explained by the increase in written premium volume.
The Net Combined Ratio under IFRS 4 at the end of the first quarter of 2025 stood at 93.60%, up from 93.15% recorded in the same period of 2024.
As a result of the above, the Net Underwriting Result for Q1 2025 closed at US$ 13.2 million, an increase of 22.4% compared to the underwriting result of US$ 10.8 million reported at the end of March 2024 under IFRS 4.
Our investment portfolio recorded an income of US$ 21.8 million, translating to an increase of 6.7% compared to US$ 20.48 million recorded in Q1 2024. The positive performance was driven by higher interest income from fixed-income instruments.
As a result of the above underwriting and investment performance, the Overall Net Profit for the first quarter of 2025 is US$ 22.5 million, translating to an increase of 32.5% compared to the profit of US$ 16.9 million achieved in the same period of 2024. The increase was driven by an increase in underwriting profit coupled with an increase in investment income and a moderate decrease in foreign currency (FX) loss.
The Group MD/CEO of Africa Re, Dr. Corneille Karekezi, commented on the performance at the end of March 2025, saying, “We are pleased to report a strong first quarter 2025 performance, which reflects our expanding business portfolio and volume in diverse markets across Africa and beyond. Our disciplined underwriting, effective risk management, and prudent investment strategies have been key to our success. In an unstable global environment, we continue to deliver value to our clients and shareholders. Our interim results showcase the strength and resilience of our business model, and we are confident in our ability to seize every opportunity in our core markets and to maintain this momentum throughout the year 2025.”
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Additional Information
Africa Re continues to publish its 2025 accounts under the new industry accounting and reporting standards of IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments). For information and comparison, the Corporation will also continue to include annual accounts under the old industry accounting and reporting standard IFRS 4 (Insurance Contracts).
Key Financial Information under IFRS 17
Item (US$ Million) Q1 2025
Reinsurance Service Revenue 216.312
Reinsurance Service Expenses -181.980
Reinsurance Service Result 34.332
Reinsurance Finance Result -12.507
Non-Attributable Expenses -5.618
Net Reinsurance Result 16.207
Net Investment Income 21.999
Finance Cost & Exchange Losses / Gains -12.099
Income Tax -0.555
Net Profit After Tax 25.552
Key Financial Information under IFRS 4
Item (US$ Million) Q1 2025
Gross Written Premium 287.860
Gross Earned Premium 262.144
Net Earned Premium 207.613
Net Technical Expenses -180.314
Management Expenses -14.011
Investment and Other Income 21.863
Finance Cost & Exchange Losses / Gains -12.099
Income Tax -0.555
Net Profit After Tax 22.497
Cautionary Note: Above are un-audited Management Accounts.
