Standard and Poor’s reaffirms the A- rating of Africa Re with a stable outlook.
Ratings Details:
Financial Strength Rating A – / Stable
Counterparty Credit Rating A – / Stable
Ratings Rationale
Standard and Poor’s Rating Services outlook on Africa Re is stable. The ratings rationale reflects the Corporation’s strong franchise across Africa, well-diversified premiums, strong operating performance, excellent liquidity and strong capitalization resulting from the proceeds of the fourth capital increase, which amounted to US$ 159 million with shareholders’ funds growing to US$ 677,5 million as at the end of 2013. The ratings agency also takes into account premium growth over the years, return on equity, geographical and business diversification as well as investment risk appetite in the key markets of the African Reinsurance Corporation.
Very Good Financial Year 2013
Africa Re’s underwriting performance and growth in premium income have been strong over the past years. Accordingly, the Corporation had a premium income of US$ 670,46 million in 2013, combined ratio of 92,6% and net profit of US$84,80 million. Technical results amounted to US$39 million and investment income and income from other sources stood at US$46 million.
This commendable performance was achieved in an economic and trading environment marked by political and social unrest in some major markets. These results are due to prudent underwriting and management of investments and rigour with regard to the use of its resources.This favourable trend is expected to continue with evolving risk management, strengthened risk controls and monitoring capabilities to support operations and active review of loss-making risks.