Sierra Leone-headquartered WAICA Reinsurance Corporation's (WAICA Re) operating performance is strong, with the company reporting robust return-on-equity ratios in recent years that have significantly exceeded the benchmark interest rates in the markets where the reinsurer operates, says AM Best.
The global credit rating agency adds that WAICA Re’s earnings are underpinned by a solid technical performance, reflecting the company’s expertise and underwriting discipline.
AM Best expects WAICA Re’s prospective earnings to remain strong, albeit potentially volatile as the company supports start-up costs of its banking subsidiary.
WAICA Re is a composite reinsurer writing business in more than 90 countries across the globe, with a business profile benefitting from a well-diversified and profitable underwriting portfolio.
Ratings outlooks revised
AM Best has affirmed WAICA Re’s Financial Strength Rating of ‘B’ (Fair) and Long-Term Issuer Credit Rating of ‘bb+’ (Fair). The agency revised the outlooks to ‘Stable’ from ‘Positive’.
The credit ratings reflect WAICA Re’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and marginal enterprise risk management.
The revision of the outlooks to ‘Stable’ from ‘Positive’ considers the weakening of the company’s balance sheet strength fundamentals.
Balance sheet
WAICA Re’s balance sheet strength is underpinned by risk-adjusted capitalisation as measured by Best’s Capital Adequacy Ratio (BCAR), which was at the strongest level at year-end 2025.
The buffer in the company’s risk-adjusted capitalisation in excess of the strongest threshold level decreased materially at year-end 2025, due to growth in its real estate investments and the establishment of a banking subsidiary.
In addition, WAICA Re remains exposed to significant economic, political and financial system risks, with the majority of its assets held in the sub-Saharan Africa region.
In 2026, WAICA Re secured a subordinated loan from ECOWAS Bank for Investment and Development for $50m, which will enhance the liquidity of its investment portfolio. The company’s financial leverage and interest coverage are expected to remain stable in the medium term.
In addition, the company’s risk-adjusted capitalisation, as measured by BCAR, is expected to partially recover in 2026, due to receiving equity credit for the subordinated debt and high earnings retention.