African Reinsurance Corporation Reports Growth in Half-year Profits

The African Reinsurance Corporation reported profit growth of 89pc and a premium income growth of 11.88pc in original currencies for the first half of 2015.

The Corporation recorded a stable performance in terms of net profit at 3.09 million dollars despite a decrease of 33pc in investment income for the same period. This commendable bottom-line performance is mainly attributable to improved underwriting performance and profit of 12.5 million dollars recorded during the same period last year.

With regard to gross written premiums the Corporation secured 348.46 million dollars against 342.47 million dollars the previous year, representing a slight increase of 1.75 per cent, despite the negative impact of operating currencies depreciation estimated at 34.7 million dollars.

Investment income dropped from 27.1 million dollars to $18.2 million dollars, following the decrease of the return on investment from 5.46 per cent to 3.38 per cent at the same period last year. This was impacted negatively by the timid growth of the equity market and the negative performance of the US bond market.

The Corporation was established in February 1976 by member states of the then Organisation of African Unity (now the African Union), at the initiative of the African Development Bank (AfDB). The purpose of the Corporation is to foster the development of the insurance and re-insurance industry in Africa.


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