AM Best has confirmed East Africa Reinsurance Company’s (EARe) financial strength rating of “B” and long-term credit rating of “bb+”. The outlook for these two ratings is stable.
The rating reflects EARe’s strong balance sheet, adequate operational performance and enterprise risk management. The balance sheet’s strength is assessed by its high level of risk-adjusted capitalization.
In 2019, the Kenyan reinsurer recorded a turnover of 46.5 million USD. The combined ratio was set at 96.5%. The return on equity (ROE) for 2015-2019 amounted to 14.3%.
East Africa Reinsurance Company was incorporated in 1993 and commenced operations on 1st January of 1995. The company was formed through a joint initiative of local insurance companies in Kenya and the International Finance Corporation (IFC), the private sector arm of the World Bank.