Standard & Poor’s Reaffirms Africa Re’s Financial Rating at A- (Strong) with Stable Outlook

Standard & Poor’s has reaffirmed the financial strength rating of the African Reinsurance Corporation (Africa Re) at A- (Strong) with a Stable Outlook. The rating agency considers Africa Re’s Financial Risk Profile to be Very Strong as it expects capital adequacy to be maintained in excess of the “AAA” range.

According to S&P, Africa Re’s market-leading position across the continent, its sufficient capital buffer to absorb potential deterioration in its asset credit quality and its limited exposure to Covid-19 related classes of business, are key indicators to its readiness and capacity to face future challenges.

The rating agency considered Africa Re’s strong brand and reputation, with many cedants across Africa, as a key differentiator relative to other international and regional players on the continent. With a broad diversification of its underwriting portfolio, Africa Re is able to ensure stability in its operating performance, “cushioning the effect of weaker economic conditions and the higher-risk operating environment that characterizes most of Africa”.

“Africa Re’s special status also provides a significant competitive advantage” as it is allowed access to business as a “‘locally admitted’ insurer in many regions”, according to S&P.

Dr. Corneille Karekezi, Group MD/CEO of Africa Re, commenting on the financial strength rating re-affirmation by Standard & Poor’s stated: “This is good news which will surely be an energizing factor for the road ahead. This is the beginning of our post Covid-19 resilience journey. I seize this opportunity to thank the staff of Africa Re for a job well done and also call on them to work more in order to maintain this rating and even do better.”