“Rising the highest line” more difficult than anticipated, CEO says
Africa Re has introduced its preliminary monetary outcomes for the yr 2023, noting a historic milestone because it crosses the billion-dollar mark.
It reported a gross written premium (GWP) of $1.106 billion, marking an annual progress price of 16.25%, which it says notably exceeded its forecasts for the yr. This progress was attributed to efficient advertising and marketing methods, new enterprise acquisitions, favorable market pricing, sturdy re’ demand, and average financial growth in key markets.
Adjusting for fixed alternate charges on the finish of 2022, the GWP may have reached $1.199 billion, reflecting a progress price of practically 25.92%. The corporate attributed this to its underwriting self-discipline, strategic worth changes, and a diversified portfolio.
Important claims from earthquakes in Türkiye and Morocco had been mitigated by the corporate’s danger administration methods, it claimed. This led to an improved internet mixed ratio of 93.51% for 2023, down from 94.45% in 2022, and a internet underwriting revenue of $54.806 million, up 33.68% from the earlier yr.
Africa Re additionally noticed a rise in funding and different earnings, totaling $73.873 million for 2023, in comparison with $13.124 million in 2022. This 462.88% enchancment mirrored a restoration from capital losses incurred within the earlier yr and advantages from a excessive rate of interest atmosphere.
Group MD/CEO Dr Corneille Karekezi expressed delight within the firm’s achievements.
“As we report our monetary statements in US Greenback and the overwhelming majority of our enterprise is initially denominated in African currencies, rising the highest line has been more difficult than we anticipated,” Karekezi stated. “Crossing that milestone is an affidavit of the resilience of the company in face of the continual depreciation and devaluation of our working African currencies in opposition to the US$ since 2015, in addition to different macroeconomic challenges together with geopolitical tensions, low financial progress and sovereign debt disaster.”
Africa Re reported a internet earnings of $129.145 million for 2023, an enchancment of 444.16% in comparison with $23.733 million in 2022. The insurer’s capital place has strengthened, with a 6.95% progress in Shareholders’ Fund, restoring its return on common fairness to 12.59%, a rise from the typical of 5.16% recorded between 2018 and 2022.
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