The African Reinsurance Corporation (Africa Re) has capped its 50th year with a sharp rise in full-year 2025 earnings, as net profit after tax climbed 50.62% under IFRS 4 to $199 million on the back of double-digit premium growth and record investment returns – results that place the reinsurance group well ahead of the pace set by global peers.
Gross written premium reached $1.34 billion, up 10.18% year on year, while gross reinsurance revenue under IFRS 17 advanced 6.22% to $1.27 billion from $1.20 billion in 2024.
Africa Re has said it reports under both standards "for information and comparison," having transitioned to IFRS 17 while retaining IFRS 4 accounts alongside.
The corporation attributed the top-line performance to firmer renewals, increased facultative placements and broader demand across property, engineering, motor, life and specialty lines. Improved pricing in select property and motor markets following recent global loss events, together with favorable foreign-exchange movements, also lifted reported volumes.
The full-year figures extend a trajectory visible at the half-year mark, when Africa Re posted gross written premium of $644.3 million for H1 2025, a 15.31% year-on-year increase, alongside net income of $102.81 million, up 19.97%, and a combined ratio of 89.18%.
Underwriting held up against higher paid claims, aided by better development in outstanding reserves and portfolio management measures. Expenses moved broadly in line with business growth.
Investment and other income rose 27.28% to $114 million, pushing the portfolio yield to 5.51% from 4.94% a year earlier. Foreign-exchange losses were a further tailwind, falling 87.09% to $5.4 million on currency movements across several operating markets.
Africa Re's 51% profit jump comfortably outpaces the wider market. Fitch Ratings has reported that the world's four largest European reinsurers delivered a record average return on equity of 21.1% and a combined ratio of 81.5% in the first half of 2025, while the broader global P&C reinsurance sector ran at 87.6% over the same period.
Previously reported, the results also reinforce Africa Re's standing on the continent, where it underwrites roughly one-fifth of Africa's reinsurance premiums and ranks 38th among S&P Global's top 40 global reinsurance groups.
The continent's reinsurance market, worth $6.269 billion in 2024, grew 89% over the past decade – outpacing direct insurance growth in Africa by 33 points.
On the balance sheet, total assets expanded 14.05% to $2.69 billion. Shareholders' equity rose 18.99% to $1.37 billion, supported by retained earnings and translation gains.
Group managing director and chief executive Dr. Corneille Karekezi tied the performance to the reinsurer's diversification strategy and a recent S&P upgrade to a full "A" rating.
"Despite elevated loss activity in some markets, we combined underwriting discipline with strong investment performance to deliver double-digit premium growth and a 51% rise in net profit," Karekezi said.
