African Reinsurance reported a 50.6% year-on-year increase in net profit after tax for fiscal year 2025 (FY25) to US$199 million from US$132 million in FY24, driven by strong underwriting performance, record investment returns and lower foreign exchange losses.
The reinsurer achieved strong premium growth, with gross written premiums (GWP) increasing 10.18% year-on-year to US$1.34 billion, compared to US$1.21 billion in FY2024; underwriting profit increased 9.58% to US$96 million, compared with US$87.3 million in FY2024.
Additionally, Africa Re’s total reinsurance revenue increased by 6.22% to US$1.27 billion in FY25 compared to US$1.2 billion in FY24.
The reinsurer explained that the strong top-line performance was driven by stronger renewal patterns, an increase in temporary placements and expanding demand across key business lines including property, engineering, automotive, life and professional risks.
At the same time, underwriting performance remained resilient despite an increase in claims, driven by higher premiums and a slight decline in loss ratios.
Africa Re reported a combined ratio of 90.73% for FY25, driven by improved net loss ratio.
The reinsurer’s “record investment income” was $114 million, a year-on-year increase of 27.28%, driven by significant increases in net profit and total comprehensive income.
Profitability improved as foreign exchange losses were significantly reduced, falling 87.09% to $5.4 million, driven by favorable currency movements in multiple operating markets.
In addition, the reinsurer’s investment performance reached an “all-time high” of $114 million, driven by strong interest income and favorable market trends, boosting portfolio yields to 5.51% from 4.94% the previous year.
The reinsurer maintained a strong financial position, supported by continued growth in key balance sheet components, with total assets increasing to $2.69 billion, up 14.05% from the prior year, driven by growth in financial assets and higher cash, term deposit and fixed income holdings.
Finally, shareholders’ equity increased 18.99% year over year to $1.37 billion, reflecting strong retained earnings and favorable translation adjustments from operating currency appreciation.
Dr. Corneille Karekezi, Managing Director and Chief Executive Officer of Africa Re, commented: “Our 2025 results underscore the strength of Africa Re’s diversified portfolio and disciplined strategic execution, as evidenced by our recent upgrade of our financial and credit ratings to ‘A’ across the board by Standard & Poor’s. Despite increased loss activity in certain markets, we combined underwriting discipline with strong investment performance to achieve double-digit premium growth and 51% net profit growth.”
“We enter 2026 with a resilient balance sheet, strong liquidity and a clear strategic focus on sustainable value creation. Going forward, we will continue to deepen client partnerships in Africa and select international markets, tighten risk selection and optimize asset allocation, while maintaining tight cost controls.”