Africa Re records 11.8% growth in gross written premium in H1

As at the end of June 2017, Africa Re reported a gross written premium of $ 372.64 million up from $ 328.34 million in June 2016, representing 11.82 percent growth. This performance was driven by new partnerships, a relatively stable South African rand against the US dollar as well as new treaties and facultative business written in West Africa.

Investment income grew by 30.12 percent up from US$ 20.65 million in the corresponding period of the previous year to $ 26.87 million as at June 2017. This increase is the result of the good performance of equity and bonds during the period and the relative stability of the transaction currencies in the Corporation’s core markets.

However, large losses in South Africa (the Cape fire & storms) and in the Middle East (Abu Dhabi National Oil Company), led to a drop in the Corporation’s net profit from $32.6 million in June 2016 to $7.6 million in 2017.

Corneille Karekezi, group managing director/CEO pointed out the Corporation’s resilience despite the large losses recorded. He further stated that the successful growth of the top line bodes well for the achievement of the financial objectives set for this year.

Africa Re as a pan-African reinsurance company has over the years participated  in the payment of many large claims without which the economy of the concerned countries would have been seriously affected. This is as a result of the limited capacity of most of the insurance companies in the continent. Between 2012 and 2016, Africa Re paid a total of $1.66 billion in claims which constitutes an average of $333million annually.

It is worthy of mention that in some regions, insurers have the tendency to offload their financial burden onto the reinsurers. Thus, reinsurers are known to be the main carrier of risks so much so that when a claim arises, they are the key payers. For example, the disastrous fire accident at the International Airport in Kenya, claimed $ 19.6 million out of which $ 18.96 million was settled by reinsurers. In this case, reinsurers’ contributions amounted to almost 96 percent out of which Africa Re contributed 25 percent.

Modestus  Anaesoronye