Based on preliminary and unaudited figures under IFRS 4, Africa Re has reported a net income of $129.145 million in 2023, marking a massive improvement of 444.16% from the $23.733 million net income posted in 2022.
Africa Re additionally recorded gross written premiums of $1.106 billion for 2023, translating into an annual growth of 16.25%.
According to the firm, the growth was attributable to successful marketing efforts, leading to new business acquisitions, improved market prices, strong reinsurance demand, and moderate economic growth in its core markets.
Africa Re also reportedly achieved a strong underwriting performance, translating into an improvement of its net combined ratio to 93.51% (2022: 94.45%) and a net underwriting profit of $54.806 million, an improvement of 33.68%.
The firm noted that the impact of some natural catastrophes, especially the earthquakes in Türkiye and Morocco, as well as other major losses reported in 2023, are all within its risk appetite and retrocession protection arrangements.
Meanwhile, Africa Re’s investment and other income in 2023 was $73.873 million, compared with US$ 13.124 million in the previous year.
Africa Re explained that the recovery from the capital losses recorded in 2022 and the high-interest rate environment resulted in an improvement of 462.88%
Africa Re’s MD/CEO, Dr Corneille Karekezi, commented, “The milestone achievement in gross written premium at $1 billion recorded in 2023 is a psychological victory for Africa Re, especially as this milestone was initially to be crossed within or at the end of our 2014-2018 strategy horizon.
“As we report our financial statements in US Dollars and the vast majority of our business is originally denominated in African currencies, growing the top line has been more challenging than we expected.
“Crossing that milestone is a testimony of the resilience of the Corporation in the face of the continuous depreciation and devaluation of our operating African currencies against the $ since 2015, as well as other macroeconomic challenges including geopolitical tensions, low economic growth and sovereign debt crisis.
“For example, at stable exchange rates of 2011, 2012 and 2013, the Corporation would have surpassed the $1 billion milestone in 2017. It is better late than never, and this reaffirms Africa Re as an African success story.”
Karekezi continued, “2023 is the best year in our history based on the net income. As we celebrate our 48th Founders Day in this month of February 2024, we remain grateful to our founding fathers, hardworking colleagues and strategic partners for their commitment and support as well as our customers for their continued trust in Africa Re.”
