Africa Re underwriting loss widens in H1
Africa Re has increased the underwriting loss to $24.1 million in the first half of 2018 from $18.8 million in the same period of 2017.
The reinsurer experienced large claims in West Africa and South Africa. In addition, Africa Re faced an upward review of the reserves of the largest natural catastrophes of 2017 in South Africa (Knysna Fire, Johannesburg Floods, Durban Storms).
Gross written premium grew by 10.8 percent year on year to $412.7 million over the period, attributable to favourable treaty terms and renewals in South Africa, organic growth in cedants’ business portfolio and increased treaty shares in reinsurance business, the company said.
Volatility in the financial markets during the first half of 2018 resulted in higher than expected unrealized losses in the corporation’s bonds and equity portfolios. As a result, investment income declined to $13.3 million from $26.1 million over the period.
“The operating environment in the first half year was as challenging as in 2017, but the corporation’s fundamentals remain strong,” said Africa Re CEO Corneille Karekezi. “In line with our plans, we expect a positive momentum in our core markets during the remaining quarters of the year,” Karekezi added.
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