The African Reinsurance Corporation (Africa Re) has reported a profit of $16.0m in 1Q2026, compared to $25.6m in 1Q2025.

In a statement, the company says that this result, accounted for under IFRS 17, represents a 6.4% profit margin on reinsurance revenue and reflects resilient operating performance despite lower earned premiums, reduced retrocession recoveries, and weaker investment market conditions. Net reinsurance service result stood at $30.7m, while net investment income amounted to $17.5m.

Reinsurance revenue for 1Q2026 declined to $249.5m from $262.1m in 1Q2025, notwithstanding a 9.9% increase in gross written premiums under IFRS 4. The slower translation of written premium growth into IFRS 17 revenue was mainly due to higher reserves for unexpired risks.

Reinsurance service expense also reduced by 5.8% to $184.0m, but this was not sufficient to offset the revenue decline, resulting in a marginal reduction in reinsurance service result before retrocession to $65.5m in 1Q2026 from $66.8m in 1Q2025.

The net expense from retrocession contracts held increased to $34.8m from $32.5m in 1Q2025, primarily due to lower loss recoveries from retrocessionaires during the quarter. As a result, service result before non-attributable expenses declined to $30.7m. Non-attributable expenses remained stable at $5.6m.

Meanwhile, a modest improvement in the interest rate environment reduced net reinsurance finance expense to $11.6m in 1Q2026 from $12.5m in 1Q2025, partially cushioning the decline in operating performance.

Investment performance

Africa Re’s investment portfolio generated a net investment income of $17.5m in 1Q2026, compared with $22.0m in 1Q2025. Investment and other income under IFRS 4 amounted to $16.6m, down 23.9% year-on-year. The decline was largely attributable to capital losses on listed equities and bonds, whose valuations were adversely affected by geopolitical tensions in the Middle East.

Despite short-term volatility, the reinsurer expects market conditions to normalise over time and will continue to focus on preserving value through disciplined asset allocation and prudent risk management.

Financial position and capital strength

Africa Re maintained a strong balance sheet position in 1Q2026, with total assets increasing to approximately $2.19bn from $2.17bn at the end of 2025. Shareholders’ funds increased marginally to about $1.398bn, reinforcing the corporation’s strong capital base and financial resilience. Total liabilities stood at approximately $793.3m, compared to $770.4m at year-end 2025.

The corporation entered the remainder of the year with solid capitalisation, ample liquidity and continued capacity to support clients across its markets.

Commenting on the unaudited first-quarter financial results, Dr Corneille Karekezi, Group Managing Director/CEO of Africa Re, said, “Our 1Q2026 performance demonstrates the Corporation’s resilience in a quarter marked by softer earned revenue, lower retrocession recoveries and volatile financial markets. While profitability moderated from a strong prior-year base, and remained within our appetite and forecast, our underwriting fundamentals remain sound, our capital position remains robust, and our diversified business model continues to support long-term value creation. We will maintain disciplined underwriting, active portfolio optimization and prudent investment management as we navigate the rest of the year.”

IFRS 17: 1Q2026 Key Financial Information
Metric (US$’000)	1Q2026	1Q2025	Y-o-Y change
Gross Reinsurance Revenue	249,532	262,144	-4.80%
Net Reinsurance Revenue	209,660	216,312	-3.10%
Net Reinsurance Service Expenses	-178,338	-181,981	-1.70%
Net Reinsurance Service Result	30,722	34,331	-10.50%
Net Reinsurance Finance Result	-11,635	-12,507	-7.00%
Non-Attributable Expenses	-5,594	-5,617	-0.40%
Net Reinsurance Result	13,493	16,207	-16.70%
Net Investment Income	17,538	21,999	-20.30%
Finance Cost & Exchange Losses / Gains	-13,671	-12,099	13.00%
Income Tax	-1,376	-555	147.90%
Net Profit After Tax	15,984	25,552	-37.40%

IFRS 4: 1Q2026 Key Financial Information
Metric (US$’000)	1Q2026	1Q2025	Y-o-Y change
Gross Written Premium	316,339	287,860	9.90%
Gross Earned Premium	249,532	262,144	-4.80%
Net Earned Premium	200,986	207,613	-3.20%
Net Technical Expenses	-175,338	-180,315	-2.80%
Management Expenses	-14,414	-14,011	2.90%
Net Underwriting Result	11,234	13,287	-15.50%
Investment and Other Income	16,637	21,862	-23.90%
Finance Cost & Exchange Losses / Gains	-13,671	-12,099	13.00%
Income Tax	-1,376	-555	147.90%
Net Profit After Tax	12,824	22,496	-43.00%