Dr Corneille KAREKEZI
BY NKECHI NAECHE-ESEZOBOR— African Reinsurance Corporation (Africa Re), the leading pan-African reinsurer in Africa and the Middle East, said it was able to grow its gross written premium by 5.04% in 2021 to reach US$ 845. 35 million.
Speaking at it’s 44th Annual Ordinary Meeting of the General Assembly held recently in Cairo, Dr Mohammed MAAIT, Chairman of the Board of Directors and the General Assembly of Africa Re, disclosed that, net underwriting profit increased by 146.21% to stand at US$ 34.56 million, while operating expenses and capital expenditure were kept within the approved budget.
He added that investment and other incomes also grew to US$ 54.14 million thanks to the Corporation’s investment strategy that prioritises the preservation of capital and liquidity.
He however said, this good performance was dampened by the depreciation of the functional currencies against the dollar, our reporting currency.
This situation, he said resulted in a considerable loss of US$47.78 million (compared to US$9.25 million in 2020). This has seriously affected the overall net profit of the Corporation which stood at US$ 38.42 million (against US$55.71 million in 2020).
He added that ihe reinsurer’s shareholders’ equity remains stable at US$ 1 billion despite a slight decline of 1.6%.”
He added that the efforts and determination behind these good results have been recognised by Standard & Poor’s and A.M. Best international rating agencies. Standard & Poor’s and A.M. Best reconfirmed the financial strength of the Corporation at “A-“ with stable outlook and “A” with stable outlook respectively.
Dr Maait also highlighted some other key milestones achieved by the Corporation in the last 12 months, namely its preparation to meet the requirements of COP 26 in relation to climate change ; the advanced stage of compliance with IFRS17; the African insurance Awards; Young Insurance Professionals Programme; the official inauguration of the Africa Re DIFC in Dubai and continued disbursement of the pledged Covid-19 intervention of US$ 3.32 million.
Commenting on its performance over the last few years, Mr Alaa El Zoheiry stated that the Corporation “is in safe hands “ and expressed the wish to see this success story continue in the years to come.
Mr Basel EL Hini, in his speech, commended the Board, Management and the entire Staff of Africa Re for the good work they have been doing to develop the insurance industry in Egypt and on the continent.
Conscious of the need to strengthen the Corporation’s financial base, whilst ensuring returns on shareholders’ investment, the General Assembly decided that the 2021 net profit of US$ 38,823,000 be distributed as follows: “US$ 19,412,000 to the general reserve in accordance with Resolution No. 4/1992 which stipulates that 50% of the net profit after tax of each year is set aside as general reserve;
“US$ 1,000,000 to be transferred to the reserve for loss fluctuation in accordance with the decision taken by the board during its 57th meeting to set aside an amount over and above the outstanding claims provision to moderate the effects of possible fluctuation in losses in future;
“”US$ 576,000 to be transferred to the Africa Re Foundation as 1.48% of net profit.
US$ 25,200,000 to be paid as dividend at the rate of US$ 8.8% (2020: US$ 8.8 % ) per subscribed and paid-up share of US$100 par value.”
