Performance Overview
Reinsurance revenue for Q1 2026 declined to US$249.5 million from US$262.1 million in Q1 2025, notwithstanding a 9.9% increase in gross written premiums under IFRS 4. The slower translation of written premium growth into IFRS 17 revenue was mainly due to higher reserves for unexpired risks. Reinsurance service expense also reduced by 5.8% to US$184.0 million, but this was not sufficient to offset the revenue decline, resulting in a marginal reduction in reinsurance service result before retrocession to US$65.5 million from US$66.8 million in the prior-year.
The net expense from retrocession contracts held increased to US$34.8 million from US$32.5 million in Q1 2025, primarily due to lower loss recoveries from retrocessionaires during the quarter. As a result, service result before non-attributable expenses declined to US$30.7 million. Non-attributable expenses remained stable at US$5.6 million. Meanwhile, a modest improvement in the interest rate environment reduced net reinsurance finance expense to US$11.6 million from US$12.5 million in Q1 2025, partially cushioning the decline in operating performance.
Investment Performance
Africa Re’s investment portfolio generated a net investment income of US$17.5 million in Q1 2026, compared with US$22.0 million in Q1 2025. Investment and other income under IFRS 4 amounted to US$16.6 million, down 23.9% year-on-year. The decline was largely attributable to capital losses on listed equities and bonds, whose valuations were adversely affected by geopolitical tensions in the Middle East. Notwithstanding this short-term volatility, the Corporation expects market conditions to normalize over time and remains focused on preserving value through disciplined asset allocation and prudent risk management.
Financial Position and Capital Strength
Africa Re maintained a strong balance sheet position in Q1 2026, with total assets increasing to approximately US$2.191 billion from US$2.167 billion at year-end 2025. Shareholders’ funds increased marginally to about US$1.398 billion, reinforcing the Corporation’s strong capital base and financial resilience. Total liabilities stood at approximately US$793.3 million, compared to US$770.4 million at year-end 2025. The Corporation therefore entered the remainder of the year with solid capitalisation, ample liquidity and continued capacity to support clients across its markets.
Executive Management Comments
Dr. Corneille Karekezi, Group Managing Director/CEO of Africa Re, commented on the results, saying: “Our Q1 2026 performance demonstrates the Corporation’s resilience in a quarter marked by softer earned revenue, lower retrocession recoveries and volatile financial markets. While profitability moderated from a strong prior-year base, and remained within our appetite and forecast, our underwriting fundamentals remain sound, our capital position remains robust, and our diversified business model continues to support long-term value creation. We will maintain disciplined underwriting, active portfolio optimization and prudent investment management as we navigate the rest of the year.”
