14 August 2017Insurance

Africa Re H1 profit hit by large losses in South Africa, Middle East

Africa Re said on Aug. 14 that large losses in South Africa (the Cape fire & storms) and in the Middle East (Abu Dhabi National Oil Company) pushed down its profit in the first half of 2017.

Net profit fell to $7.6 million in the first six months of 2017 from $32.6 million in the same period a year ago.

In June, a fire in Knysna, South Africa, reportedly killed eight people, with 10,000 people evacuated as a storm ravaged Cape Town and the Garden Route.

In January, Abu Dhabi National Oil Company (ADNOC) has shut half the capacity at its 800,000 barrels-per-day Ruwais refinery after a fire, according to a Reuters report.

During the first six months of 2017, Africa Re grew gross written premium by 11.8 percent year on year to $372.6 million, driven by partnerships, a relatively stable South African rand against the US dollar as well as new treaties and facultative business written in West Africa.

During the period, investment income grew by 30.1 percent year on year to $26.8 million, driven by equity and bonds performance and relative stability of the transaction currencies.

CEO Corneille Karekezi noted that the “successful growth of the top line bodes well for the achievement of the financial objectives set for this year."

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More on this story

13 July 2017   The financial strength ratings of Africa Re have been placed under review with negative implications by AM Best, which has cited concerns over the permanence of its capital structure.
14 July 2017   African Reinsurance Corporation (Africa Re) has announced executive changes at its Nairobi regional office.
20 September 2017   Africa Reinsurance Corporation (Africa Re) said on Sept. 19 that Daryl De Vos, managing director of Africa Re South Africa (ARCSA) has resigned.