Business and Market Commentary
The Corporation recorded a Gross Written Premium of US$ 644.30 million (H1 2024: US$ 558.72 million), reflecting an impressive 15.31% year-on-year growth. Under IFRS 17, gross reinsurance revenue also rose by 15.87% to US$ 612.85 million (H1 2024: US$ 528.90 million). This robust performance was largely driven by a substantial rise in proportional treaty premiums within key production centres. Additionally, organic growth was spurred by premium increases following significant market corrections after major catastrophe events, further accelerating momentum in core markets. These factors collectively underscore Africa Re’s operational strength and its proactive engagement with brokers and market players across its core territories.
In H1 2025, technical expenses aligned closely with premium income volumes. Net incurred claims increased by 20.71%, impacted by unfavorable claims experience and ongoing macroeconomic pressures. Despite these challenges, Africa Re remains committed to prompt claims settlement, prudent claims management, and supporting clients during difficult times. The net acquisition cost also rose by 12.04% year-on-year, reflecting the Corporation’s continued efforts to reward its strategic partners appropriately.
At half-year, the net underwriting result reached US$ 54.35 million, with the net underwriting margin closing at 10.82% (H1 2024: 12.46%) and a corresponding net combined ratio of 89.18% (H1 2024: 87.54%). This solid performance underscores the Corporation’s operational resilience and disciplined risk selection and remains well within expectations.
Investment Performance
Africa Re’s investment portfolio delivered a stronger result of US$ 51.15 million in H1 2025 compared to US$ 42.02 million recorded in H1 2024. This performance is attributable to an active management of various assets, especially the fixed income portfolio, in an environment of high volatility.
Net Income
The Corporation posted an overall net income of US$ 102.81 million (H1 2024: US$ 85.09 million) translating to a growth of 19.97%. This is driven by strong revenue growth, technical performance and investment performance as well as subdued negative impact of finance costs.
Financial Position
As of June 30, 2025, Africa Re’s total assets stood at US$2.60 billion, up 10.25% from December 2024. Shareholders’ equity increased by 8.80% to US$1.25 billion, supported by higher retained earnings.
The Group MD/CEO of Africa Re, Dr. Corneille Karekezi, commented on the performance at the end of June 2025, saying, “Reflecting on our strong performance for the first half of 2025, I am proud to report that Africa Re continues to demonstrate robust growth and resilience. Our expanding business portfolio, disciplined underwriting, and prudent investment strategies have enabled us to achieve significant premium growth while navigating an increasingly complex business environment. The improvement in our financial position, with rising assets and shareholders’ equity, further underscores the effectiveness of our strategy and risk management approach”.
Dr. Karekezi further gave insights into a positive outlook, “As we look ahead, we are confident in Africa Re’s ability to seize opportunities in our core markets, maintaining the momentum that has defined our results for this half year. We remain optimistic that we will achieve the set targets for the 2025 financial year under the current market conditions. The Corporation remains committed to delivering value and upholding the strength and stability our partners expect from us”.
Additional Information
Africa Re continues to publish its accounts under the new industry accounting and reporting standards of IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments). For information and comparison, the Corporation will also continue to include annual accounts under the old industry accounting and reporting standard IFRS 4 (Insurance Contracts) and IAS 39 (Financial Instruments).
IFRS 17: Unaudited H1 2025 Key Financial Information
Item (US$’000) H1 2025 H1 2024
Gross Reinsurance Revenue 612,845 528,901
Net Reinsurance Revenue 522,709 454,139
Net Reinsurance Service Expenses -425,533 -336,413
Net Reinsurance Service Result 97,176 117,726
Net Reinsurance Finance Result -28,427 -44,554
Non-Attributable Expenses -12,751 -10,453
Net Reinsurance Result 55,998 62,719
Net Investment Income 50,355 42,022
Finance Cost & Exchange Losses / Gains -838 -10,955
Income Tax -2,580 -17
Net Profit After Tax 102,937 93,770
IFRS 4: Unaudited H1 2025 Key Financial Information
Item (US$’000) H1 2025 H1 2024
Gross Written Premium 644,297 558,742
Gross Earned Premium 612,845 528,901
Net Earned Premium 502,459 433,656
Net Technical Expenses -416,654 -353,531
Management Expenses -31,459 -26,083
Investment and Other Income 51,153 42,022
Finance Cost & Exchange Losses / Gains -838 -10,955
Income Tax -2,580 -17
Net Profit After Tax 102,081 85,092
For further information, please contact:
Director, Communications & Public Affairs
Mr. Roger Bong
Tel: +234 806 338 0991 Email: bong.roger@africa-re.com
Manager, Corporate Communications
Mr. Alfred Adogbo
Tel: +234 706 957 5806 Email: adogbo.alfred@africa-re.com
