2017 cat claims and financial headwinds hit Africa Re’s results
Africa Re made an underwriting loss in the third quarter of 2018 while its investment portfolio also suffered – but its CEO said he remains positive it can produce a good underwriting profit and a commendable investment performance for the whole of 2018.
The reinsurer posted premium income of $577.4 million in the third quarter, an increase of 11.6 percent on the same period a year earlier. It said the growth was driven by mew business in west and southern Africa and the fact that African currencies were stable against the US dollar.
It made an underwriting loss in the period of $20.8 million, slightly better than the loss of $24.4 million it made a year earlier. It said this was because of ongoing claims from 2017 catastrophes in South Africa ad a number of large property and energy losses.
It also suffered a deterioration in its investment income in the period which reduced to $23.5 million compared with $41.3 million a year earlier. It said this was because of “financial headwinds triggered by the US interest rate hike, the trade dispute with China and a correction in the equity markets, which translated into unrealized losses in bonds and its equity portfolio.
Corneille Karekezi, CEO of Africa Re, said: “The unprecedented catastrophe and large losses experienced last year translated into higher incurred losses after refining the inventory and level during the first three quarters of 2018. Once again, this demonstrates the need for reinsurance to support communities and business assets.
“Africa Re is proud of its timely support to insurers and affected customers. Despite such losses the corporation’s outlook for the year remains positive. Save for any large claim for the reminder of the year we foresee and overall reduced but still good underwriting profit and a commendable investment performance for 2018.”
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
P/C unit drives strong performance at Allianz
Standard Club partners with China's Ping An to underwrite P&I risks
Lloyd's appoints outgoing Beazley CUO to its board
AXIS estimates losses from Hurricane Michael could reach $120m
New insurtech startup targets commercial property underwriting
