Africa Re Boosts Stability as Assets Hit US$2.6bn, Equity Up 8.8% In H1 2025

The African Reinsurance Corporation (Africa Re) has reported a strong set of half-year 2025 results, underscoring its resilience, growth momentum, and adaptability in an evolving insurance landscape. According to the half year report released and excerpts from the website by The Ameh News, the performance comes stronger at a time when Nigeria’s insurance sector, under the guidance of the National Insurance Commission (NAICOM), is undergoing sweeping recapitalisation reforms designed to bolster industry depth, enhance solvency, and widen penetration across Africa’s largest economy.

For Africa Re, the numbers tell a story of both stability and forward-looking growth. Gross Written Premiums reached US$ 644.30 million, a 15.31% increase year-on-year. Net profit surged nearly 20% to US$ 102.08 million, while investment income climbed to US$ 51.15 million, reflecting disciplined asset management in a volatile global financial environment. Shareholders’ equity grew up by 8.8% to US$ 1.25 billion, reinforcing Africa Re’s capital strength at a time when the sector is facing higher capital adequacy benchmarks.

Flashback: A Growth Journey Rooted in Resilience

Since its establishment in 1976, Africa Re has served as a cornerstone for Africa’s insurance ecosystem, helping local insurers retain risk within the continent while reducing reliance on external markets. Through turbulent decades—from commodity shocks and foreign exchange crises to global financial meltdowns—the reinsurer has consistently delivered value while adapting to shifts in regulatory and reporting standards, including the adoption of IFRS 17.

Its H1 2025 results reflect not only a continuation of that legacy but also a demonstration of Africa Re’s ability to lead by example as recapitalisation reshapes the industry.

5 Key Takeaways from Africa Re’s H1 2025 Results

1. Robust Premium Growth in a Challenging Market
   Africa Re recorded US$ 644.30 million in Gross Written Premiums, representing a 15.31% year-on-year increase. This growth was fueled by proportional treaty premiums and premium adjustments following market corrections after recent catastrophe events. It underscores Africa Re’s operational strength and the trust it commands among brokers and cedants.
2. Resilient Underwriting Despite Higher Claims Pressure
   The Corporation’s net underwriting result stood at US$ 54.35 million, with a net combined ratio of 89.18%. Though claims costs rose by over 20%, Africa Re maintained profitability, highlighting its disciplined risk selection and effective claims management culture.
3. Stronger Investment Income Adds Balance
   Investment returns surged to US$ 51.15 million, a 21.73% increase from H1 2024. This was achieved through agile asset allocation in fixed income and other instruments, balancing the underwriting challenges and reinforcing overall profitability.
4. Strengthened Financial Position for the Long Term
   With total assets reaching US$ 2.60 billion and shareholders’ equity growing to US$ 1.25 billion, a Equity Up 8.8%, Africa Re remains well-capitalised. These figures position the Corporation strongly against the backdrop of NAICOM’s recapitalisation push, setting an industry benchmark for financial resilience.
5. A Model for Africa’s Insurance Transformation
   Beyond the numbers, Africa Re’s performance reflects what the sector aspires to under NAICOM’s reforms: discipline, transparency, and growth with resilience. By sustaining profitability while expanding partnerships, Africa Re demonstrates how African insurers and reinsurers can adapt to stricter capital requirements while still delivering value to stakeholders.

Reflection: What This Means for the Wider Insurance Industry

Africa Re’s results come at a pivotal moment. Nigeria’s insurance regulator is driving a sector-wide recapitalisation that will raise the minimum capital requirements for operators, pushing smaller firms to consolidate, innovate, or exit. In this environment, Africa Re’s strong performance offers both a benchmark and a reassurance.

It shows that with strategic underwriting, strong partnerships, and prudent financial management, African insurers can withstand shocks, attract new capital, and grow sustainably. The reinsurer’s steady results also send a clear message: the era of insurance being treated as a peripheral financial service is ending—it is now central to Africa’s financial stability and economic growth agenda.

Looking Ahead

Group MD/CEO Dr. Corneille Karekezi reflected on the results with optimism:

“Our strong performance for the first half of 2025 reflects Africa Re’s robust growth and resilience. With expanding portfolios, disciplined underwriting, and prudent investments, we are navigating an increasingly complex environment while strengthening the stability our partners expect.”

The Bigger Picture

The 2025 half-year results highlight Africa Re’s unique positioning: financially solid, strategically focused, and development-oriented. In an era when African economies seek resilience against external shocks, Africa Re stands as a reminder that African institutions can thrive, compete, and lead globally when built on vision, discipline, and trust.

As NAICOM’s recapitalisation drive continues to reshape the landscape, Africa Re’s half-year performance offers a glimpse into the future of Africa’s insurance industry—one that is stronger, better capitalised, and more capable of supporting the continent’s growth ambitions.

Analysts Weigh In

Insurance and financial experts in Lagos say Africa Re’s results mirror the increasing depth and maturity of Africa’s reinsurance market.

Celestine Ukpong, a Lagos-based insurance analyst, economist and investor, noted that the reinsurer’s performance signals both resilience and opportunities for broader market growth:

“What stands out in these numbers is not just the premium growth but the consistency of Africa Re’s profitability across underwriting and investment activities. In a period marked by high claims inflation and currency volatility, maintaining a combined ratio below 90% is a strong indicator of disciplined risk management. This performance gives confidence to cedants and investors who have been watching closely since NAICOM began driving recapitalisation.”

Ukpong added that the reforms sweeping across the insurance sector are creating a healthier competitive environment, one where stronger capitalised institutions like Africa Re can expand their role as stabilisers in the market:

“Reinsurance is the backbone of insurance stability. Africa Re’s growth demonstrates how capital strengthening, strategic asset management, and strong governance can position African reinsurers to compete more effectively with their global counterparts. For investors, this signals long-term value creation, particularly as Africa continues to industrialise and insure more of its economic assets.”

With NAICOM’s recapitalisation agenda reshaping the sector, Africa Re’s disciplined growth, capital buffers, and regional footprint position it as a key stabiliser and leader in Africa’s reinsurance space.

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