AM Best, the credit rating agency, has changed the outlook on the ratings of WAICA’s Reinsurance Corporation PLC (WAICA Re), a Sierra Leone-based reinsurer serving markets across sub-Saharan Africa, from positive to stable, while maintaining its Financial Strength Rating at B (Fair) and its Long-Term Issuer Credit Rating at “bb+” (Fair).
The company said its ratings assessment reflects WAICA Re’s strong balance sheet strength and operating performance, alongside a neutral business profile and marginal enterprise risk management.
The move to a stable outlook reflects a reduction in some of the factors supporting WAICA Re’s balance sheet strength. AM Best noted that the company continued to maintain risk-adjusted capitalisation at the strongest level under its Best’s Capital Adequacy Ratio (BCAR) measure at the end of 2025.
However, AM Best noted that the capital buffer above the strongest BCAR threshold narrowed materially during the year. The agency linked this primarily to WAICA Re’s increased exposure to real estate investments and the establishment of a banking subsidiary. AM Best also highlighted the company’s continued exposure to economic, political and financial system risks, particularly given that most of its assets are located within sub-Saharan Africa.
During 2026, WAICA Re obtained a USD $50 million subordinated loan from ECOWAS Bank for Investment and Development. AM Best said the additional funding is expected to improve the liquidity profile of the company’s investment portfolio. The agency expects WAICA Re’s financial leverage and interest coverage to remain broadly stable over the medium term.
AM Best also expects the company’s risk-adjusted capitalisation to improve partially during 2026. The agency said this should be supported by the equity credit assigned to the subordinated debt and WAICA Re’s continued retention of a high proportion of its earnings.
In its assessment of WAICA Re’s operating performance, AM Best said the company has maintained strong results. WAICA Re has recorded robust returns on equity in recent years, with these returns significantly exceeding benchmark interest rates in the markets in which it operates.
AM Best attributed the company’s earnings performance in part to its technical results, which the agency said reflect WAICA Re’s underwriting expertise and discipline. Looking ahead, AM Best expects the reinsurer to continue generating strong earnings, although results may be subject to some volatility as WAICA Re incurs the initial costs associated with establishing its banking subsidiary.
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