Nigeria-based Africa Reinsurer reported gross written premiums (GWP) increased by 9.9% to $316.3 million in the first quarter of 2026, compared with $287.8 million in the first quarter of 2025.
Despite this, gross premiums and net premiums still fell by 4.8% and 3.2% respectively. For the quarter, gross premiums earned were $249.5 million, compared with $262.1 million in the first quarter of 2025, and net premiums earned were $200.9 million, compared with $207.6 million in the first quarter of 2025.
The reinsurer reported net profit after tax in 1Q26 falling to US$12.8 million in 1Q26 from US$22.4 million in 1Q25 under IFRS 4, a decrease of 43%.
Africa Re said “written premium growth has been slower to translate into IFRS 17 income, primarily due to increases in unearned risk reserves.”
In accordance with IFRS 17, reinsurance revenue in 1Q26 decreased 4.8% to US$249.5 million from US$262.1 million in 1Q25. Reinsurance services expenses decreased 5.8% to $184 million, but this was not enough to offset the revenue decline, resulting in a slight decrease in pre-retrocession reinsurance services results to $65.5 million from $66.8 million in the first quarter of 2025.
The reinsurer also explained that net expenses on retrocession contracts held increased to $34.8 million from $32.5 million in the first quarter of 2025, primarily due to lower loss recoveries from retrocession companies during the quarter.
At the same time, a modest improvement in the interest rate environment reduced net reinsurance finance expenses from $12.5 million in 1Q25 to $11.6 million in 1Q26, partially mitigating the decline in operating results.
In accordance with IFRS 17, overall net profit after tax fell 37.4% to US$16 million in the quarter, compared with US$25.6 million in the first quarter of 2025. The result represented a margin on reinsurance income of 6.4%, reflecting a resilient operating performance despite lower earned premiums, lower retrocession recovery rates and soft investment market conditions.
In the first quarter of 2026, net reinsurance services results were US$30.7 million, a decrease of 10.5% from US$34.3 million in the first quarter of 26. Net investment income in 1Q26 was $17.5 million, a decrease of 20.3% from $22.0 million in 1Q25.
Africa Re explained that investment and other income under IFRS 4 was US$16.6 million, a year-on-year decrease of 23.9%, mainly due to capital losses on listed stocks and bonds, whose valuations were adversely affected by geopolitical tensions in the Middle East.
The reinsurer maintained a strong balance sheet position in Q26, with total assets increasing to approximately $2.191 billion from $2.167 billion at the end of 2025.
Dr. Corneille Karekezi, Managing Director and Chief Executive Officer of Africa Re Group, commented: “Our first quarter 2026 results demonstrate the company’s resilience in a quarter characterized by weaker revenue, lower retrocession recovery rates and higher financial market volatility.
“While profitability has moderated from last year’s strong base but remains in line with our appetite and forecasts, our underwriting fundamentals remain solid, our capital position remains strong and our diversified business model continues to support long-term value creation.
“We will maintain disciplined underwriting, aggressive portfolio optimization and prudent investment management throughout the remainder of the year.”
