The African Reinsurance Corporation (Africa Re) has posted a 32.5% jump in net profit to $22.5m for the first three months of 2025, compared to $16.9m achieved in 1Q2024, according to a statement released by Africa's biggest reinsurer.
The profit surge was driven by an increase in underwriting profit coupled with a rise in investment income and a moderate decrease in foreign exchange losses.
The net underwriting result for 1Q2025 was $13.2m, an increase of 22.4% compared to $10.8m for 1Q2024 under IFRS 4. The net combined ratio under IFRS 4 in the first quarter of 2025 stood at 93.60%, up from 93.15% recorded in the corresponding quarter in 2024.
The reinsurer also reported 1Q2025 investment income of $21.8 m, an increase of 6.7% compared to $20.48m recorded in 1Q 2024. This is attributed to higher interest income from fixed-income instruments.
Africa Re says that it recorded gross written premiums of $288m for the first quarter of 2025, representing 13.7% growth from the $253m reported for the corresponding quarter in 2024.
The reinsurer said, “This was mainly due to successful marketing efforts, strong reinsurance demand in key markets and relatively lower depreciation of African currencies in which most of the African business portfolio is denominated. However, global trade wars and ongoing real active wars in Ukraine, Gaza, Sudan and other pockets of instability in Africa, continue to dampen the benefits of a moderate economic growth witnessed by some countries in Africa.”
In the first quarter of 2025, under IFRS 4, the reinsurer recorded gross incurred claims of $141m, compared to $101m in the corresponding quarter of the previous year. The deterioration of 40.1% is attributable to the increase in claims, especially from the incurred but not reported (IBNR) claims component.
Retrocessionaires’ share of incurred claims increased from $9.9m in 1Q2024 to $16.1m in 1Q2025. This resulted in net incurred claims of $125m in 1Q2025, up from $91m recorded in 1Q2024.
Africa Re's Key Financial Information for 1Q2025
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Under IFRS 17 - $ m
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Under IFRS 4 - $ m
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Reinsurance service revenue
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216.3
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Gross written premium
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287.9
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Reinsurance service expenses
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(182.0)
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Gross earned premium
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262.1
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Reinsurance service result
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34.3
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Net earned premium
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207.6
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Reinsurance finance result
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(12.5)
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Net technical expenses
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(180.3)
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Non-attributable expenses
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(5.6)
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Management expenses
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(14.0)
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Net reinsurance result
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16.2
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Net investment income
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22.0
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Investment and other income
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21.9
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Finance costs & forex losses
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(12.1)
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Finance costs & forex losses
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(12.1)
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Income tax
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(0.6)
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Income tax
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(0.6)
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Net profit after tax
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25.6
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Net profit after tax
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22.5
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Source: Africa Re
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