Africa Re grows but high claims hit profits
New business in West and Southern Africa as well relatively stable currencies against the US dollar drove growth at Africa Re for the first nine months of 2017. But the reinsurer made a loss due to higher claims.
The reinsurer posted premium income of $517.15 million, an increase of 12 percent compared with the same period a year earlier.
But cat losses in South Africa, the Middle East and Central Africa meant it posted an underwriting loss of $24.48 million in the period, compared with a small profit the year before.
This was somewhat offset by an improvement in its underwriting income which reached $41 million in the period, an improvement of 17 percent.
Cornelle Karekezi, CEO of Africa Re, said: “The catastrophe and large losses recorded during the first three quarters of 2017 have demonstrated the need for reinsurance to support rebuilding communities and business’s assets. Africa Re is proud of its timely support towards insurers and affected customers. Despite such significant losses, the corporation’s outlook for the year end remains positive. We foresee an overall reduced but still good underwriting profit and strong investment performance for 2017.”