Nigeria domiciled African Reinsurance Corporation has reported a 9.9% increase in gross written premiums (GWP) for the first quarter of 2026 to $316.3 million, compared to $287.8 million in Q1’25.
Despite this, gross and net earned premiums were down 4.8% and 3.2%, respectively. For this quarter, gross earned premiums stood at $249.5 million, compared to $262.1 million in Q1’25, while net premiums earned were $200.9 million, compared to $207.6 million in Q1’25.
The reinsurer has reported a 43% decrease in net profit after tax for Q1’26 to $12.8 million from $22.4 million in Q1’25, under IFRS 4.
Africa Re said, “The slower translation of written premium growth into IFRS 17 revenue was mainly due to higher reserves for unexpired risks.”
For Q1’26, under IFRS 17, reinsurance revenue declined by 4.8% to $249.5 million from $262.1 million in Q1’25. The reinsurance service expense reduced by 5.8% to $184 million, but was not enough to offset the revenue decline, resulting in a marginal reduction in reinsurance service result before retrocession to $65.5 million from $66.8 million in Q1’25.
The reinsurer also explained that the net expense from retrocession contracts held increased to $34.8 million from $32.5 million in Q1’25, primarily due to lower loss recoveries from retrocessionaires during the quarter.
Meanwhile, a modest improvement in the interest rate environment reduced net reinsurance finance expense in Q1’26 to $11.6 million from $12.5 million in Q1’25, partially cushioning the decline in operating performance.
For the quarter, overall net profit after tax declined by 37.4% to $16 million under IFRS 17, compared to $25.6 million in Q1’25. The result represents a 6.4% profit margin on reinsurance revenue and reflects resilient operating performance despite lower earned premiums, reduced retrocession recoveries, and weaker investment market conditions.
In Q1’26, the net reinsurance service result stood at $30.7 million, a 10.5% decline from $34.3 million in Q1’26. Net investment income amounted to $17.5 million in Q1’26, compared with $22 million in Q1’25, a decrease of 20.3%.
Africa Re explained that investment and other income under IFRS 4 amounted to $16.6 million, down 23.9% year-on-year, largely attributable to capital losses on listed equities and bonds, whose valuations were adversely affected by geopolitical tensions in the Middle East.
In Q’26, the reinsurer maintained a strong balance sheet position, with total assets increasing to approximately $2.191 billion from $2.167 billion at year-end 2025.
Dr. Corneille Karekezi, Group Managing Director and Chief Executive Officer, Africa Re, commented, “Our Q1 2026 performance demonstrates the Corporation’s resilience in a quarter marked by softer earned revenue, lower retrocession recoveries and volatile financial markets.
“While profitability moderated from a strong prior-year base, and remained within our appetite and forecast, our underwriting fundamentals remain sound, our capital position remains robust, and our diversified business model continues to support long-term value creation.
“We will maintain disciplined underwriting, active portfolio optimisation, and prudent investment management as we navigate the rest of the year.”
