The African reinsurance landscape in 2021/2022 demonstrated a mix of notable growth and stability across both life and non-life sectors, as revealed by recent market data.
Among the top 14 markets, the African life reinsurance market experienced significant growth, with a year-on-year increase of USD 193 million, reaching a total of USD 2.0 billion in 2021/22, up from USD 1.8 billion in the previous period.
South Africa emerged as a dominant player, contributing to 77.8% of the total life reinsurance market in Africa, driven by a substantial rise of USD 120 million in life reinsurance premiums from USD 1.4 billion in 2021 to USD 1.6 billion in 2022.
The combined contribution of Egypt, Kenya, Ghana, Nigeria, and South Africa accounted for 93.7% of the total market share, with Kenya securing the third position, Namibia moving up to the sixth position, Nigeria advancing to the fifth position, and Tunisia entering the seventh position in the rankings, marking shifts in the market dynamics compared to the previous period.
In the African non-life reinsurance sector, the top 14 markets also saw growth, with premiums increasing by USD 172 million year-on-year, reaching USD 6.3 billion in 2022, up from USD 6.1 billion in 2021.
Nigeria’s non-life reinsurance premiums recorded a significant rise of USD 64 million, while Angola witnessed an increase of USD 53 million.
South Africa maintained its position as the largest market, accounting for 56% of the total African non-life reinsurance market, amounting to USD 3.5 billion.
The top six markets, which include Egypt, Nigeria, Kenya, Morocco, and Algeria, alongside South Africa, represented 87% of the total market, with Nigeria climbing to the third position and Angola securing the seventh position. Kenya, while maintaining its fourth position, reduced the gap with the market leader by increasing premiums.
Moreover, the retrocession market in Africa saw stability amid increasing cessions, prices, and restrictive conditions in many countries. Global reinsurers responded to these challenges by introducing exclusions to all-risk covers or moving towards named perils.
Risks like terrorism and events such as strikes, riots, and civil commotion were carefully assessed, with some reinsurers offering coverage on a named peril basis only. In certain cases, cedents agreed to narrower cover for significant risks to attract additional capacity and close deals.
In the non-life reinsurance sector, cession rates in 2021/2022 increased in Botswana (+6 percentage points) and Namibia (+2 percentage points), while witnessing slight decreases in Ivory Coast (-2 percentage points), Nigeria (-1 percentage points), and Tunisia (-1 percentage points).
Overall, the listed African countries maintained remarkably stable cession rates, with only minor changes observed.
