S&P Global Ratings has revised the African Reinsurance Corporation’s (Africa Re) financial rating outlook to Positive from Stable while affirming its A- global scale financial strength ratings.
The rating agency highlighted Africa Re’s strong position in the African reinsurance market, noting its ability to sustain robust operating performance over the next two years.
Africa Re’s subsidiary, African Reinsurance Corp. (South Africa) Ltd., also received the same ratings, benefiting from a parental guarantee.
S&P cited Africa Re’s market-leading position, driven by its geographic and product diversification across African countries. This diversification helps the company mitigate the challenges of weak economic conditions in many of its operating markets.
The agency also noted Africa Re’s strong underwriting performance in the third quarter of 2024, reporting a combined ratio of 89% and net income of $131 million.
Dr. Corneille Karekezi, the Group MD/CEO of Africa Re, commented on the positive outlook revision, stating, “This is a significant milestone and a testament to the resilience of the Corporation despite operating in a volatile business environment exposed to significant macroeconomic headwinds especially currency risks as a US dollar reporting entity while writing most of its business in local African currencies. We will continue to maintain our strategic orientation geared towards product and geographical diversification.”
