The African Reinsurance Corporation (Africa Re) has recorded a Gross Written Premium Income of US$ 879.05 million at the end of the 3rd Quarter of 2024, translating to 8.99 per cent growth from the US$ 806.55 million reported for the same period of 2023.
The reinsurance company attributed the growth to marketing efforts, positive pricing momentum, and moderate economic growth witnessed by most countries in Africa, its core markets, despite continued challenges posed by the ongoing geopolitical tensions, extreme weather conditions, fiscal policy tightening, currency depreciation against the US Dollar and inflationary pressures.
At the end of the period under review, Africa Re, recorded Gross Incurred Claims of US$ 436.78 million, compared to US$ 404.40 million for the same period in 2023.
The negative variance of 8.01per cent is attributable to increasing claims reported and incurred under the period across some of its business units and lines.
In the same period, the Retrocessionaires’ Share of Incurred Claims increased from US$ 27.60 million in Q3 2023 to US$ 45.49 million in Q3 2024.
The combination of these resulted in a Net Incurred Claims of US$ 391.29 million at the end of the 3rd Quarter of 2024 from US$ 376.79 million recorded in the same period of 2023.
In the period under review, the Net Commissions and Charges amounted to US$ 191.71 million against US$ 169.36 million recorded in the same period in 2023. This increase of 13.20 per cent in the Net Acquisition Cost originated from an increase in the written premium volume.
The Net Combined Ratio at the end of the 3rd Quarter of 2024 stood at 88.74 per cent, down from 93.66 per cent recorded in the same period of 2023.
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As a result, the Net Underwriting Result as at Q3 2024, under International Financial Reporting Standard (IFRS 4) accounting standard, closed at US$ 79.52 million, an improvement of 100.82 per cent compared to the Net Underwriting Result of US$ 39.60 million reported at the end of September 2023.
Investment & Other Income for the reported period stands at US$ 71.74 million, translating to an increase of 59.40 per cent above the US$ 45.01 million recorded in Q3 2023. The positive performance was driven by higher interest income from fixed-income instruments.
Going by the outstanding underwriting and investment performances, the overall Net Profit, under IFRS 4 accounting standard, for the 3rd Quarter of 2024 is a Profit of US$ 131.43 million, translating to an improvement of 74.20 per cent compared to the profit amounting to US$ 75.45 million achieved in the same period of 2023.
The Group MD/CEO of Africa Re, Dr. Corneille Karekezi, while commenting on the performance at the end of September 2024 stated that, “Africa Re continues to demonstrate a strong and resilient business model which is able to capture the full benefits of a conducive environment characterised by a continuous positive adjustment or of global reinsurance market prices and the strengthening of returns in the global financial markets.
Barring any sharp decline of the investment returns, possibly following the outcome of the November 2024 US Elections or from heightening of current geopolitical tensions, or any adverse development of already reported natural catastrophe claims, or significant additional depreciation of major African currencies, the financial year 2024 is heading to a second successive historical record performance both in top line and in bottom line, he disclosed.
