Continental Reinsurance’s Global Confidence Reaffirmed: AM Best Affirms B+ Rating Amid Challenging African Markets

Continental Reinsurance Plc, a trailblazer in Africa’s reinsurance sector, has once again demonstrated resilience and strategic foresight, earning the affirmation of its B+ Financial Strength Rating and “bbb-” Long-Term Issuer Credit Rating by the prestigious global rating agency, AM Best. This achievement underscores the company’s unwavering commitment to operational excellence, even amid significant economic, political, and environmental challenges across African markets.

Since its inception in 1985, Continental Reinsurance has redefined the reinsurance landscape in Africa. By providing life and non-life reinsurance services to over 50 countries, the company has become a stabilizing force for economies vulnerable to external shocks, such as foreign exchange volatility and catastrophic events.

According to the report Excerpts from company’s website showing a modest gross written premium of NGN 34.2 billion (USD 94.4 million) in 2018, the reinsurer has grown significantly, recording NGN 103.2 billion (USD 231.2 million) by 2022 within four years operations. The report further shared that this growth reflects a deliberate strategy of geographical diversification and operational scaling, positioning the company as a stabilizing force in the continent’s financial ecosystem.

Reflecting on this year’s rating, Lawrence Nazare, Group Managing Director, emphasized the importance of strategic adaptation:

 “We have successfully maintained our rating (B+, stable outlook) despite operating in a particularly challenging environment characterized by elevated levels of economic, political, and financial system risks in African markets. External factors, including high foreign exchange volatility and an increase in catastrophic events, have further impacted the environment.”

What sets Continental Re apart is its proactive approach to capital management and geographic diversification, as highlighted by AM Best. By ensuring that its growth is carefully aligned with available capital and underwriting capabilities, the company continues to strengthen its operations across diverse African markets.

“Maintaining our rating in the face of elevated economic and financial risks speaks to our strong foundations in capital management and operational diversification.”

According to a renowned risk management consultant, AM Best’s affirmation reflects Continental Re’s robust governance and adaptability. He notes:

 “Continental Re’s ratings are a testament to its ability to align growth strategies with capital availability while maintaining a strong focus on risk management.”

Realigning capital allocation to address emerging risks.

Enhancing digital transformation to maintain service delivery.

Strengthening partnerships with local insurers to manage surging claims.

These initiatives ensured business continuity and demonstrated the company’s preparedness for future crises, earning praise from industry leaders.

Stakeholders highlight Continental Re’s strategic diversification across geographical regions and sectors as a key strength. The company’s ability to navigate Africa’s complex economic terrain, while continuously delivering value, has earned the trust of regulators, policyholders, and business partners alike. CEO of a leading insurance brokerage firm, credits the company’s unwavering focus on capital management and underwriting capabilities for creating a foundation of trust:

 “Continental Re’s consistent ratings by AM Best reassure us that our investments are supported by a reliable and forward-looking partner.”

Similarly, local insurers appreciate the company’s efforts in enhancing risk-sharing mechanisms, which have strengthened their capacity to serve African markets.

Stakeholders commend Continental Reinsurance Plc as a beacon of excellence in the pan-African reinsurance industry, applauding its consistent ability to earn global recognition from AM Best for financial strength and operational resilience, reaffirming confidence in its leadership and strategic vision.

Continental Re’s journey offers key lessons for the African insurance sector:

1. Geographical and Operational Diversification: Mitigates market-specific risks.

2. Capital Management Discipline: Aligning growth with available resources sustains financial strength.

3. Proactive Risk Mitigation: Investing in innovation and adaptability safeguards operations during crises.

The affirmation of Continental Reinsurance’s ratings by AM Best is more than a recognition—it is a reflection of the company’s enduring role as a leader in African reinsurance. Through strategic innovation and stakeholder collaboration, Continental Re continues to foster stability, growth, and confidence in Africa’s dynamic financial ecosystem. This milestone not only reinforces its reputation as a trusted partner but also sets a benchmark for excellence in the global insurance industry.