Africa Re delivers strong 2025 results with 50% surge in net profit
Africa Re
Nike Popoola
The African Reinsurance Corporation has announced a record-breaking financial performance for the year ended 31 December 2025, driven by robust premium growth, stronger underwriting profitability, and unprecedented investment income, which together pushed net earnings and comprehensive income to historic highs.
According to its management accounts, the continental reinsurer recorded a Gross Written Premium (GWP) of $1.34 billion, representing a 10.18 per cent year-on-year increase. Under IFRS 17 reporting, gross reinsurance revenue also rose by 6.22 per cent to $1.27 billion, compared to $1.20 billion in 2024. The growth was attributed to stronger renewal patterns, increased facultative placements, and rising demand across major lines of business including property, engineering, motor, life, and specialty risks.
The company said improved pricing conditions in some property and motor markets following recent global loss events, alongside favourable foreign exchange movements, also contributed to the overall premium expansion.
Underwriting performance remained resilient during the period, with underwriting profit rising 9.58 per cent to $96 million. The combined ratio stood at 90.73 per cent, reflecting improved net incurred loss ratios and disciplined portfolio management despite higher claims activity in some markets. Operating expenses increased in line with business growth, maintaining efficiency levels across the organisation.
Investment performance was a key driver of overall results, with investment and other income rising sharply by 27.38 per cent to $114 million. The strong performance was supported by higher interest income and capital gains, lifting the portfolio yield to 5.51 per cent from 4.94 per cent in the previous year.
The company’s net profit after tax surged by 50.6 per cent to $199 million, supported by stronger underwriting results, record investment income, and a significant reduction in foreign exchange losses, which fell by 87.09 per cent to $5.4 million due to favourable currency movements across operating markets.
Total comprehensive income more than doubled to $248 million, representing a 122.25 per cent increase year-on-year, boosted further by translation gains from the appreciation of several African operating currencies against the US dollar.
Africa Re also strengthened its financial position during the year, with total assets rising 14.05 per cent to $2.69 billion, driven by growth in financial assets, cash holdings, term deposits, and fixed-income investments. Shareholders’ equity increased by 18.99 per cent to $1.37 billion, supported by retained earnings and favourable currency translation effects.
Group Managing Director and Chief Executive Officer, Corneille Karekezi, described the results as a reflection of the corporation’s diversified portfolio strength and disciplined strategy execution.
“Our 2025 results underscore the strength of Africa Re’s diversified portfolio and disciplined strategy execution, which is also a testimony to our recent S&P upgrade to full ‘A’ financial and credit rating,” Karekezi said.
He added that despite elevated loss activity in some markets, the company achieved double-digit premium growth and a 51 per cent rise in net profit through underwriting discipline and strong investment performance.
Looking ahead to 2026, Africa Re said it will continue to deepen client partnerships across Africa and selected international markets, tighten risk selection, optimise asset allocation, and maintain strict cost discipline to sustain long-term value creation.
The corporation said its strong balance sheet, robust liquidity position, and improved profitability place it in a solid position for continued growth in the coming financial year.
