Business and Market Commentary

Africa Re recorded a Gross Written Premium of US$976.17 million for the third quarter of 2025, representing an 11.05% increase compared to the same period in 2024. Under IFRS 17, Gross Reinsurance Revenue increased by 6.93% to US$ 932.67 million (Q3 2024: US$ 872.20 million). This notable growth in premium income was primarily fueled by robust performances across several key markets, underpinned by the acquisition of new facultative accounts, enhanced renewal retention rates, and favourable foreign exchange movements, which itself contributed an additional US$19.41 million to overall premium growth.

Operating in a challenging claims environment during the period, the Corporation achieved an Underwriting Profit of US$72.62 million under IFRS 4, reflecting its continued focus on disciplined risk selection, improving portfolio diversification, and effective portfolio management. However, this figure marks an 8.68% decrease from Q3 2024, mainly due to increased claims activity for the quarter.

Africa Re continues to deepen its presence in strategic markets, leveraging its regional offices and subsidiaries to deliver tailored reinsurance solutions and strengthen client relationships.

Investment Performance

Africa Re’s investment portfolio delivered US$79.30 million in Income, up 10.53% from Q3 2024. This was driven by strong interest income from deposits and bonds, and capital gains from bonds and equities. The Average Investment Yield on assets stood at 3.82%, slightly down from 3.85% in 2024, reflecting broader market trends.

Net Income

The Corporation reported a robust Net Profit After Tax of US$142.65 million, marking an 8.54% year-on-year increase. This strong performance was driven by a significant reduction in foreign exchange losses, which dropped by 65.54% to US$6.83 million from US$19.82 million in Q3 2024, disciplined cost management that kept expenses 6.52% below budget, and impressive investment returns, all of which collectively contributed to the Corporation’s solid profitability during the period.

Financial Position

As of 30 September 2025, Africa Re maintained a strong financial position, underscored by significant year-to-date growth since 2023 across key metrics. Total assets stood at US$2.69 billion, marking a substantial increase of 14.11% from the beginning of the year. This growth reflects the Corporation’s robust financial management and effective investment strategies. Shareholders’ equity reached US$1.30 billion, representing a year-to-date rise of 12.91%. This increase highlights Africa Re’s commitment to enhancing shareholder value and maintaining a solid capital base.

Dr. Corneille Karekezi, Group MD/CEO of Africa Re, commented on these results, saying, “Our Q3 2025 results reflect the strength of our diversified portfolio and disciplined execution of our defined strategy. Despite large loss events and market volatility, we delivered strong premium growth, improved profitability, and enhanced shareholder value. Our investment strategy and cost discipline continue to yield positive results.”

The Group MD/CEO further added that: “Looking ahead, we remain confident in our ability to navigate emerging risks and seize opportunities across Africa and beyond. Our focus remains on underwriting discipline, operational efficiency, and delivering sustainable value to our stakeholders.”

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 Q3 2025 Key Financial Information

Item (US$’000)                                               Q3 2025

Gross Reinsurance Revenue                         932,673

Net Reinsurance Revenue                             783,553

Net Reinsurance Service Expenses              -657,662

Net Reinsurance Service Result                   125,891

Net Reinsurance Finance Result                  -38,183

Non-Attributable Expenses                           -19,598

Net Reinsurance Result                                68,110

Net Investment Income                                 71,402

Finance Cost & Exchange Losses / Gains   -6,830

Income Tax                                                   -2,438

Net Profit After Tax                                       130,244

IFRS 4: Unaudited Q3 2025 Key Financial Information

Item (US$’000)                                                Q3 2025

Gross Written Premium                                   976,165

Gross Earned Premium                                   932,673

Net Earned Premium                                       751,589

Net Technical Expenses                                  -630,222

Management Expenses                                  -48,749

Net Underwriting Result                                  72,618

Investment and Other Income                         79,298

Finance Cost & Exchange Losses / Gains     -6,830

Income Tax                                                      -2,438

Net Profit After Tax                                          142,648

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