By Favour Nnabugwu
AFRICAN Reinsurance Corporation (Africa Re) has concluded plans to relocate its head office even as it indicates it may underperform its revenue target for 2018.
Speaking at Africa Re’s 149th board meeting in Abuja, Chairman of the company, Mr. Hassan Boubrik, said the company has concluded plans to move its headquarters from Lagos to Abuja while the Lagos office will then serve as a regional office.
“We have headquarters in Lagos and we will be moving to Abuja soon. We will keep Lagos as regional office but headquarters will be in Abuja. Hopefully we will start construction next year and I think it will be good thing for Africa”.
He said the corporation is yet to meet its target for this year, but added that it has not disappointed its stakeholders.
He said the company’s net profit is expected to hit $57 million at the end of 2018 fiscal year in spite of the difficult operating environment during the year.
Boubrik said, “We are not meeting the target for 2018 because we had a very difficult environment. The challenges were principally on huge claims, especially in South Africa.
“But we still have good performance as we are expecting to have a net profit of $57 million in 2018, return on equity of more than six percent. What is very important is that we are setting strategy that will improve our performance in 2019 and the next years.
“We also have the effect of devaluation of some currencies and investment decrease this year. But in the life of a Reinsurance company, you could expect those experiences from time to time,” he said.
Also commenting, the Group Managing Director of Africa Re, Mr. Corneille Karekezi, said the corporation is optimistic about delivering 10 percent return on equity in US dollars, achieve $1 billion premium income and maintain its ratings.