The company attributes this growth to effective marketing strategies, favorable pricing trends, and moderate economic expansion across many African nations, which are its primary markets. This progress occurred despite ongoing challenges such as geopolitical tensions, severe weather events, tightening fiscal policies, currency depreciation against the US Dollar, and inflationary pressures.
By the end of the review period, Africa Re reported Gross Incurred Claims of US$ 436.78 million, an increase from US$ 404.40 million in the same quarter of 2023.
The 8.01 percent increase in claims is linked to a rise in reported and incurred claims across various business units and lines during the period.
Additionally, the Retrocessionaires’ Share of Incurred Claims rose from US$ 27.60 million in Q3 2023 to US$ 45.49 million in Q3 2024.
These factors contributed to a Net Incurred Claims total of US$ 391.29 million at the end of the third quarter of 2024, compared to US$ 376.79 million for the same period in 2023.
During this period, Net Commissions and Charges reached US$ 191.71 million, up from US$ 169.36 million in the same quarter of 2023. This 13.20 percent increase in Net Acquisition Cost was driven by a rise in written premium volume.
The Net Combined Ratio at the end of the third quarter of 2024 was 88.74 percent, a decrease from 93.66 percent in the same quarter of 2023.
Consequently, the Net Underwriting Result as of Q3 2024, in accordance with International Financial Reporting Standard (IFRS 4), stood at US$ 79.52 million, marking a significant improvement of 100.82 percent compared to the Net Underwriting Result of US$ 39.60 million reported at the end of September 2023.
Investment and Other Income for the reported period amounts to US$ 71.74 million, reflecting a 59.40 percent increase from the US$ 45.01 million recorded in Q3 2023. This growth can be attributed to a rise in interest income from fixed-income investments.
Based on the strong underwriting and investment results, the overall Net Profit for the third quarter of 2024, in accordance with IFRS 4 accounting standards, stands at US$ 131.43 million. This represents a 74.20 percent increase compared to the profit of US$ 75.45 million reported in the same quarter of 2023.
Dr. Corneille Karekezi, the Group MD/CEO of Africa Re, commented on the performance at the end of September 2024, stating that Africa Re continues to showcase a robust and resilient business model capable of leveraging the favorable conditions of a global reinsurance market characterized by ongoing positive adjustments in pricing and improved returns in global financial markets.
Unless there is a significant decline in investment returns, potentially influenced by the outcome of the November 2024 US Elections, escalating geopolitical tensions, adverse developments related to previously reported natural catastrophe claims, or substantial depreciation of major African currencies, the financial year 2024 is poised to achieve a second consecutive record performance in both revenue and profit, he noted.