Economy & Politics

Africa Re slowed down in the first half of 2020

In office since 2011, the Rwandan Corneille Karekezi is called upon to adjust the charges and boost the commercial front in view of the high combined ratio of the pan-African reinsurer.

In the first half of 2020, the pan-African reinsurer Africa Re posted a turnover of 393.04 million USD, down 8.99% caused by trade underperformance and, among others, the depreciation of the currencies of the operating countries (Nigeria, Tunisia, South Africa and Algeria).

Already in a delicate situation during the last financial year, the net technical result stood at 5.47 million USD, without matching the size of Africa RĂ©, an entity in which several African countries are shareholders.

Net income was $ 14.39 million, up 30% and the combined ratio across all lines of business was 98.21%. Expressing the relationship between costs and premiums collected, this ratio shows that Africa Re must consider drastically lowering these charges while strengthening its commercial aggressiveness.

A good point, however, in the assets of the pan-African reinsurer based in Lagos, the agency Standard & Poor’s had renewed the rating of A- of Africa Re, with a stable outlook, in the wake of the A rating attributed a little earlier (February 2020) by the British AM Best. Africa Re was established in 1976 by 36 member states of the African Union (AU) and the African Development Bank Group. Currently, it has 41 member states, including Kenya, and more than 100 African insurance / reinsurance companies from 41 member countries.

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