By Favour Nnabugwu
Africa Reinsurance Corporation (Africa Re), the leading pan-African reinsurer announced a net underwriting profit increased by 146.21 percent to stand at US$ 34.56 million
The gross written premium by 5.04 percent in 2021 to reach US$ 845. 35 million.
Speaking at it’s 44th Annual Ordinary Meeting of the General Assembly held recently in Cairo, Dr Mohammed Maait Chairman of the Board of Directors and the General Assembly of Africa Re, stated that investment and other incomes also grew to US$ 54.14 million thanks to the Corporation’s investment strategy that prioritises the preservation of capital and liquidity.
Maait further stated that the company’s feat was dampened by the depreciation of the functional currencies against the dollar, our reporting currency.
He said the situation resulted in a considerable loss of US$47.78 million (compared to US$9.25 million in 2020). This has seriously affected the overall net profit of the Corporation which stood at US$ 38.42 million (against US$55.71 million in 2020).
He added that the reinsurer’s shareholders’ equity remains stable at US$ 1 billion despite a slight decline of 1.6 percent”
He added that the efforts and determination behind these good results have been recognised by Standard & Poor’s and A.M. Best international rating agencies. Standard & Poor’s and A.M. Best reconfirmed the financial strength of the Corporation at “A-“ with stable outlook and “A” with stable outlook respectively.
Dr Maait also highlighted some other key milestones achieved by the Corporation in the last 12 months, namely its preparation to meet the requirements of COP 26 in relation to climate change ; the advanced stage of compliance with IFRS17; the African insurance Awards; Young Insurance Professionals Programme; the official inauguration of the Africa Re DIFC in Dubai and continued disbursement of the pledged Covid-19 intervention of US$ 3.32 million.
Africa Re’s General Assembly decided that the 2021 net profit of US$ 38,823,000 be distributed as follows: “US$ 19,412,000 to the general reserve in accordance with Resolution No. 4/1992 which stipulates that 50% of the net profit after tax of each year is set aside as general reserve; “US$ 1,000,000 to be transferred to the reserve for loss fluctuation in accordance with the decision taken by the board during its 57th meeting to set aside an amount over and above the outstanding claims provision to moderate the effects of possible fluctuation in losses in future. ”US$ 576,000 to be transferred to the Africa Re Foundation as 1.48% of net profit. US$ 25,200,000 to be paid as dividend at the rate of US$ 8.8% (2020: US$ 8.8 % ) per subscribed and paid-up share of US$100 par value.