S&P Global Ratings revised the outlook of the Financial Rating of the African Reinsurance Corporation (Africa Re) from “Stable” to “Positive” and affirmed its 'A-' global scale financial strength ratings.

The rating agency continues to consider Africa Re as a company that is “well placed to maintain [its] leading position in the African reinsurance market with sustainable robust operating performance for the next two years”. Africa Re’s subsidiary, African Reinsurance Corp. (South Africa) Ltd., benefiting from a parental guarantee, also received the same ratings.

According to the rating agency, “Africa Re maintains a market leading position in the region supported by its geographic and product diversification in African countries. This diversification cushions the effects of weak economic conditions in most of its markets of operation.” The rating agency also referred to Africa Re’s “robust underwriting for the third quarter of 2024”, quoting Africa Re’s combined ratio of 89% and net income of $131 million through the third quarter of 2024.

The Group MD/CEO of Africa Re, Dr. Corneille KAREKEZI, while commenting on the positive outlook revision, said: “This is a significant milestone and a testament to the resilience of the Corporation despite operating in a volatile business environment exposed to significant macroeconomic headwinds especially currency risks as a US dollar reporting entity while writing most of its business in local African currencies. We will continue to maintain our strategic orientation geared towards product and geographical diversification. ”