The African Reinsurance Corporation has reported an overall net profit of $22.5m for the first quarter of 2025, marking a 32.5 per cent increase compared to the $16.9m profit in the same period in 2024.
According to the firm’s quarterly report, the net income increase was driven by an improvement in underwriting profit, coupled with a higher investment income and a moderate decrease in foreign currency loss.
The report showed that Africa Re also recorded gross written premium income of $288m for Q1 2025, up 13.7 per cent from the $253m in Q1 2024.
The company attributed the improvement to successful marketing efforts, strong reinsurance demand in key markets, and the depreciation of African currencies, which is lower in most of its African business portfolio.
“However, global trade wars and ongoing real active wars in Ukraine, Gaza, Sudan and other pockets of instability in Africa continue to dampen the benefits of moderate economic growth witnessed by some countries in Africa,” Africa Re explained.
Commenting on the report, the Group Managing Director/Chief Executive Officer of Africa Re, Dr Corneille Karekezi, said, “We are pleased to report a strong first quarter 2025 performance, which reflects our expanding business portfolio and volume in diverse markets across Africa and beyond. Our disciplined underwriting, effective risk management, and prudent investment strategies have been key to our success.
“In an unstable global environment, we continue to deliver value to our clients and shareholders. Our interim results showcase the strength and resilience of our business model, and we are confident in our ability to seize every opportunity in our core markets and to maintain this momentum throughout the year 2025.
According to the report, in the period under review, Africa Re’s net underwriting result closed at $13.2m, which indicated 22.4 per cent higher compared to $10.8m in Q1 2024. However, its net incurred claims rose from $91m in Q1 2024 to $125m in Q1 2025.
On a positive note, Africa Re’s investment portfolio generated an income of $21.8m in Q1 2025, reflecting a 6.7 per cent increase compared to the $20.48m recorded in Q1 2024.
GIK/APA