The African Reinsurance Corporation (Africa Re) says that it has delivered robust premium growth, improved underwriting profitability, and record investment income, culminating in a significant rise in net profit and total comprehensive income for the financial year ended 31 December 2025.
In particular, investment results reached a record high, driven by strong interest income and favourable market movements. Total investment and other income rose to $114m, lifting the portfolio yield to 5.51%, up from 4.94% in the prior year. Investment income and other income jumped by 27.28% in 2025 compared to 2024, driven by higher interest income and positive market movements. Africa Re said in a statement, “This performance reflects the effectiveness of Africa Re’s investment strategy, strategic asset allocation, and proactive market positioning.”
Net income
The record investment income propelled net profit after tax to $199m in 2025, a 50.62% year-on-year increase, driven by substantial improvements in key performance areas. Profitability was also boosted by a sharp reduction in foreign exchange losses, which fell by 87.09% to $5.4m, driven by favourable currency movements across several operating markets.
Strengthened underwriting performance and disciplined operating cost management also contributed to the overall improvement, resulting in a significantly enhanced bottom line for the year.
Underwriting performance
Since the 2023 financial year, Africa Re has reported its accounts under IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments).
Under IFRS 17, gross reinsurance revenue increased by 6.22% to $1.27bn (FY2024: $1.20bn). This robust topline performance was driven by stronger renewal patterns, increased facultative placements, and expanding demand across major business lines, including property, engineering, motor, life, and specialty risks.
Growth was supported by improved pricing conditions in some property and motor markets following recent global loss events, as well as favorable foreign-exchange movements that boosted reported premium volumes.
Africa Re recorded broad and sustained premium growth in 2025, with Gross Written Premium reaching $ 1.34 bn, a 10.18% year-on-year increase.
Underwriting performance remained resilient despite higher paid claims, with the overall net incurred loss ratio benefiting from improved development in outstanding claims and more effective portfolio management. Expense levels rose broadly in line with business growth, maintaining operational efficiency.
The corporation also continued to strengthen risk diversification through a balanced mix of business sources, enhancing resilience against localized volatility. Combined with disciplined risk selection, the above factors contributed to a stable underwriting environment and positioned Africa Re for continued growth in 2026.
Financial position
As of 31 December 2025, Africa Re maintained a strong financial position, supported by continued growth across major balance sheet components.
Total assets increased to $2.69bn, up 14.05% from the prior year, driven by growth in financial assets and higher cash, term deposits, and fixed-income holdings.
Shareholders’ equity grew to $1.37bn, a 18.99% year-on-year increase, reflecting strong retained earnings and favourable translation adjustments from appreciating operating currencies.
Dr Corneille Karekezi, Group MD/CEO of Africa Re, commenting on the 2025 financial results, said, “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”.
Established in 1976 and headquartered in Lagos, Africa Re is a pan-African financial institution. Its core market coverage is achieved through offices located in key cities: six regional offices (Lagos, Casablanca, Abidjan, Nairobi, Ebene, Mauritius, Cairo), three representative offices (Addis Ababa, Khartoum, and Kampala), and four fully owned subsidiaries in Johannesburg (Africa Re South Africa), Cairo (Africa Retakaful Company), Dubai (DIFC Underwriting Management Agency), and recently India (Africa Re Gujarat GIFT City).