African reinsurer, Africa Reinsurance Corporation (Africa) has posted a growth of
US$517.15million in its premium income at the end of third quarter(Q3) 2017.
According to the top reinsurer its premium income grew by 11.76 percent from US$ 462.72million reported in same period of 2016.
The company attributed the strong performance to the new business in West and Southern Africa as well as the relatively stable African currencies against the dollar.
However, catastrophe and large losses recorded in South Africa, Middle East and Central Africa led to an underwriting loss of US$24.48million when compared to last year’s underwriting profit of US$0.09million.
Fortunately, investment income kept the momentum witnessed at the end if the second quarter (Q2) of 2017 and jumped to US$41.38million at the end of third quarter (Q3) of 2017 against US$35.14million in the corresponding period of 2016, indicating a growth of 17.76 percent.
The strong growth according to the reinsurer was achieved due to an upward trend in the equity and bond markets during the first nine months of 2017.
Commenting on the corporation’s performance, the group MD/CEO Mr. Corneille Karekezi said:”The catastrophe and large losses recorded during the first three quarters of 2017 have demonstrated the need of reinsurance to support rebuilding communities and businesses’ assets.
He added that “Africa Re is proud of its timely support towards insurers and affected customers.Despite such significant losses, the corporation’s outlook for the year end remains positive.We foresee an overall reduced but still good underwriting profit and strong investment performance for 2017.”