By Favour Nnabugwu
AFRICAN Reinsurance Corporation said that in spite of the huge losses and catastrophe that hit the insurance sector in recent times, it recorded 11.65 percent increase (year-on-year) in its premium income for the nine months financial period ended September of 2018 (9M’18).
The Corporation said its premium income rose to $ 577.41 million in Q3’18 from $517.15 million in Q3’17. Investment income stood at $23.52 million at the end of the third quarter of 2018, against $41.38 million in the corresponding period of the previous year, representing a 43 percent drop.
The company said the strong growth was driven by new businesses in West and Southern Africa as well as African currencies that were relatively stable against the dollar.
It, however, stated that the performance of the period was impacted by run-off of the 2017 catastrophe claims in South Africa and large property and energy losses in many of the corporation’s markets namely Central Africa, West Africa, South Africa and Middle-East, adding that this situation led to underwriting loss of $20.89 million during the period under review, representing an improvement from last year’s underwriting loss of $24.48 million.
Commenting on the corporation’s performance at the end of the third quarter, the Group Managing Director, Mr Corneille Karekezi said, “The unprecedented catastrophe and large losses experienced last year, translated into higher incurred losses after refining the inventory and level during the first three quarters of 2018. Once again, this demonstrates the need for reinsurance to support communities and business assets. Africa Re is proud of its timely support to insurers and affected customers. Despite such losses, the Corporation’s outlook for the year end remains positive.
“Save for any large claim for the remainder of the year, we foresee an overall reduced, but still good, underwriting profit and a commendable investment performance for 2018, he added.