The African Reinsurance Corporation ("Africa Re" or "the Corporation") today reported its unaudited financial results for the six months ended 30 June 2026.

Africa Re delivered a robust operating performance in the first half of 2026.

Insurance Service Revenue rose by 8.5% to US$664.8 million, and the Insurance Service Result improved by 4.7% to US$101.7 million, notwithstanding a materially heavier large-loss burden.

An effective retrocession programme absorbed the bulk of that burden, cutting the Net Expense from Retrocession Contracts Held by 67.9% year on year, while the Underwriting Combined Ratio remained strong at 84.7%.

Net Investment Income grew by 8.4% to US$54.6 million.

The Net Result of US$96.7 million was 6.1% below the prior-year period, entirely on account of a US$19.6 million Net Foreign Exchange Loss driven by currency depreciation across several operating markets.

Shareholders' Equity increased by 3.3% since year-end 2025 to US$1,442.2 million.

Dr. Corneille Karekezi, Group Managing Director/Chief Executive Officer, said:

"Africa Re has delivered a strong first half in a demanding claims environment. Insurance Service Revenue grew across the great majority of our profit centres, our underwriting discipline held the Combined Ratio below 85%, and our retrocession programme performed exactly as designed, absorbing the impact of several large losses. The moderation in our Net Result reflects currency movements rather than any deterioration in the quality of our portfolio. With a capital base of US$1.44 billion, ample liquidity and continued strong ratings, the Corporation is well positioned to support its cedants and to deliver sustainable value to shareholders through the remainder of the year."

Performance Overview

Insurance Service Revenue increased by 8.5% to US$664.8 million (H1 2025: US$612.8 million), with growth recorded in the vast majority of the Corporation's profit centres and supported by new business and stronger renewal retention. The expansion was broad-based across the portfolio, with the Property and Engineering account, the Corporation's largest, and the Life account both growing at double-digit rates.

Incurred Claims rose by 26.6% to US$358.9 million following several large losses during the period. The Corporation's retrocession programme provided the principal offset, with recoveries from retrocessionaires rising by 152.4% to US$68.9 million and the net expense from retrocession contracts held falling by 67.9% to US$20.2 million (H1 2025: US$62.9 million).

The Insurance Service Result therefore improved by 4.7% to US$101.7 million, equivalent to a Combined Ratio of 84.7% (H1 2025: 84.2%), while a more supportive interest rate environment reduced the Net Reinsurance Finance Charge by 20.0% to US$22.7 million.

The Insurance Operating Result grew by 14.9% to US$79.0 million, confirming that the underlying business strengthened year on year notwithstanding the heavier claims burden.

Investment Performance

The investment portfolio delivered a resilient performance in conditions that remained volatile. Net Investment Income rose by 8.4% to US$54.6 million, the greater part of it being recurring income from interest, dividends and rentals, which grew by 8.5% to US$44.2 million and provided a dependable earnings base through the cycle. Active management of the portfolio added a further US$9.0 million of market-related gains despite the disruption caused by geopolitical tensions during the period.

Underpinning this outcome was steady growth in the financial asset base, with the Return on Investment at 2.72% from 2.85%.

Balance Sheet and Capital Strength

Africa Re enters the second half of 2026 from a position of considerable financial strength.

Shareholders' Equity rose by 3.3% since year-end 2025 to US$1,442.2 million and Total Assets increased by 7.5% to US$2,329.3 million, against Total Liabilities of US$887.1 million. Equity therefore accounts for almost two-thirds of the balance sheet, with financial assets of US$1,957.4 million covering reinsurance liabilities more than twice over.

This capital position, together with a conservatively reserved portfolio, a highly liquid asset base and financial strength ratings of A (Stable) from AM Best and A (Stable) from S&P Global Ratings, gives the Corporation substantial capacity to absorb volatility and to honour its commitments to cedants under stress. It also provides the headroom to write further profitable business as opportunities arise across Africa and its selected international markets, and to sustain returns to shareholders.

Outlook

Africa Re maintains its 2026 targets.

Management expects continued revenue growth supported by improved renewal retention across its core African markets and selected international portfolios, while maintaining underwriting discipline, active portfolio optimisation and prudent investment management.

The Corporation will continue to monitor claims development, currency volatility and the geopolitical environment closely over the second half of the year.