African Reinsurance Corporation (Africa Re), has strengthened its financial performance for the year ended December 31, 2025, delivering double-digit premium growth and a rise in profitability, supported by improved underwriting discipline and record investment income.
The corporation reported gross written premium (GWP) of $1.34 billion, representing a 10.18 percent increase compared to the previous year, reflecting sustained expansion across its core markets and business lines. Under the IFRS 17 reporting framework, gross reinsurance revenue rose by 6.22 percent to $1.27 billion from $1.20 billion in 2024.
Growth in premium income was largely driven by stronger renewal rates, increased facultative business, and rising demand across key segments such as property, engineering, motor, life, and specialty risks. The company also benefited from improved pricing conditions in selected markets, particularly in property and motor classes, following recent global loss events, alongside favourable foreign exchange movements that boosted reported figures.
Despite a rise in claims paid during the year, Africa Re maintained a resilient underwriting performance. Underwriting profit climbed to $96 million, up 9.58 percent year-on-year, supported by higher premium volumes and a marginal improvement in the loss ratio. The combined ratio stood at 90.73 percent, reflecting continued efficiency in risk management and claims handling.
The reinsurer’s investment performance emerged as a key driver of overall earnings, with investment and other income rising significantly by 27.38 percent to $114 million. This was underpinned by higher interest income and capital gains, as well as favourable market conditions. Consequently, the company’s portfolio yield improved to 5.51 percent from 4.94 percent in the prior year, highlighting the effectiveness of its asset allocation strategy.
Africa Re’s bottom line saw a substantial boost, with net profit after tax increasing by 50.6 percent to $199 million. The increase in profitability was attributed to stronger underwriting results, record investment returns, and a notable reduction in foreign exchange losses, which declined by over 87 percent to $5.4 million due to more favourable currency movements across its operating markets.
Total comprehensive income rose even more sharply, growing by 122.25 percent to $248 million. This was largely driven by translation gains resulting from the appreciation of several African currencies against the US dollar, the company’s reporting currency.
On the balance sheet, Africa Re maintained a solid financial position, with total assets increasing by 14.05 percent to $2.69 billion. The growth was supported by higher financial assets, including increased holdings in cash, term deposits, and fixed-income securities. Shareholders’ equity also strengthened, rising by 18.99 percent to $1.37 billion, reflecting retained earnings growth and positive currency translation adjustments.
The corporation noted that its diversified portfolio and balanced mix of business sources continue to enhance resilience against localised market volatility. Improved claims development and disciplined portfolio management further contributed to stable underwriting conditions during the period.
Commenting on the results, Corneille Karekezi, group managing director and chief executive officer, said the performance highlights the strength of the company’s strategy and operational discipline.
He pointed out that the results also reflect the corporation’s recent upgrade by S&P Global Ratings to a full “A” financial strength and credit rating, underscoring investor confidence in its financial stability.
Karekezi added that despite heightened loss activity in some markets, the company successfully combined disciplined underwriting with strong investment execution to deliver robust growth in both revenue and profit.
Looking ahead, he said Africa Re entered 2026 with a resilient balance sheet, strong liquidity position, and clear strategic priorities aimed at sustaining value creation. These include deepening client relationships across African and select international markets, tightening risk selection, optimising asset allocation, and maintaining strict cost discipline.
The reinsurer expressed confidence that its current trajectory, supported by improved pricing environments and continued demand for reinsurance solutions, will position it for sustained growth in the coming year.
