African Reinsurance Corporation has reported a 50.6% year-on-year increase in net profit after tax to $199 million for the financial year of 2025 (FY’25), up from $132 million in FY’24, driven by stronger underwriting performance, record investment returns, and lower foreign exchange losses.
The reinsurer delivered robust premium growth, as gross written premium (GWP) rose by 10.18% year on year to $1.34 billion compared to $1.21 billion in FY’24, as underwriting profit rose by 9.58% to $96 million compared to $87.3 million in FY’24.
Additionally, Africa Re’s gross reinsurance revenue for FY’25 rose by 6.22% to $1.27 billion, compared to $1.20 billion in FY’24.
The reinsurer explained that stronger renewal patterns drove this robust topline performance, increased facultative placements, and expanding demand across major business lines, including property, engineering, motor, life, and specialty risks.
Meanwhile, underwriting performance remained resilient despite higher paid claims, driven by higher premium volume and a marginally lower loss ratio.
Africa Re reported a FY’25 combined ratio of 90.73%, driven by improved net incurred loss ratio.
The reinsurer’s “record investment income” of $114 million, an increase of 27.28% year on year, was driven by a significant rise in net profit and total comprehensive income.
Profitability was boosted by a sharp reduction in foreign exchange losses, which fell 87.09% to $5.4 million, driven by favourable currency movements across several operating markets.
Moreover, the reinsurer’s investment results were driven by strong interest income and favourable market movements and reached a “record high” at $114 million, lifting the portfolio yield to 5.51%, up from 4.94% in the prior year.
The reinsurer has maintained a strong financial position, supported by continued growth across major balance sheet components, as total assets increased to $2.69 billion, up 14.05% from the prior year, driven by growth in financial assets and higher cash, term deposits, and fixed‑income holdings.
Lastly, shareholders’ equity grew by 18.99% year on year to $1.37 billion, reflecting strong retained earnings and favourable translation adjustments from appreciating operating currencies.
Dr. Corneille Karekezi, Group Managing Director and Chief Executive Officer, Africa Re, commented, Our 2025 results underscore the strength of Africa Re’s diversified portfolio and disciplined strategy execution, which is also a testimony to our recent S&P upgrade to full ‘A’ financial and credit rating. Despite elevated loss activity in some markets, we combined underwriting discipline with strong investment performance to deliver double‑digit premium growth and a 51% rise in net profit.
“We enter 2026 with a resilient balance sheet, robust liquidity and clear strategic priorities for sustainable value creation. Looking ahead, we will continue to deepen client partnerships across Africa and selected international markets, tighten risk selection, and optimise asset allocation, while maintaining strict cost discipline.”
