The African Reinsurance Corporation (Africa Re) recorded almost 6% growth in gross written premium last year at $845m and recorded a combined ratio of 96.1%, better than the average of 100.3% recorded by global reinsurers.
Chairman of the board of directors and the general assembly, Hassan Boubrik, said: “Africa Re recorded an impressive improvement in all performance metrics. Our gross written premium grew by almost 6% to $845m and underwriting performance improved by 26% to $26m.
“In line with the recovery of the global financial markets in 2019, investment income reached an all-time high of $66m, representing 165.7% growth compared to the previous year. Average return on investment stood at 5.26%.”
He added that, overall, the corporation achieved a 219.5% increase in net profit to reach $99.1m. “This excellent performance resulted in a 6.3% improvement in the shareholders’ funds, which now amounts to $975m. At the same time, a dividend of $8.80 per share is distributed, slightly higher than $8 per share paid last year,” said Mr Boubrik.
The shareholders have approved $49,952,000 going into the general reserve in accordance with Resolution No 4/1992 of the general assembly, which stipulates that 50% of the net profit after tax of each year is set aside as general reserve.
Some $800,000 is to be transferred to the reserve for loss fluctuation in accordance with the decision taken by the board during its 57th session, to set aside an amount over and above the outstanding claims provision, to moderate the effects of possible fluctuation in losses in future.
The board has also approved $1,998,080, representing 2% of the net profit, to be transferred to the Africa Re Foundation. The increased proportion of the net profit allocated to the Africa Re Foundation for 2020 will enable the corporation to significantly enhance its contribution to mitigate the negative impact of the Covid-19 outbreak on healthcare systems and economies across Africa.
The Africa Re Foundation’s overall corporate social responsibility contribution towards the fight against the pandemic currently amounts to $3.3m. The funds will be deployed to support key continental, regional and local players in the fight against Covid-19, the corporation said.