The African Reinsurance Corporation (Africa Re) has delivered a robust operating performance in the first half of 2026. Insurance service revenue rose by 8.5% to $664.8m, with growth recorded in the vast majority of the company's profit centres and supported by new business and stronger renewal retention.
The expansion was broad-based across the portfolio, with the Property and Engineering account, the Corporation's largest, and the Life account both growing at double-digit rates, said Africa Re in a statement.
The company’s 1H2026 net result of $96.7m, however, was 6.1% lower than the $102.9m reported for the corresponding half of 2025. The reduced net result was entirely on account of a $19.6m net foreign exchange loss driven by currency depreciation across several operating markets.
Underwriting result
The insurance service result improved by 4.7% to $101.7m. Incurred claims rose by 26.6% to $358.9m following several large losses during the period. The Corporation's retrocession programme provided the principal offset, with recoveries from retrocessionaires rising by 152.4% to $68.9m and the net expense from retrocession contracts held falling by 67.9% to $20.2m.
The combined ratio stood at 84.7% for 1H2026 (1H2025: 84.2%), while a more supportive interest rate environment reduced the net reinsurance finance charge by 20.0% to $22.7m.
“The insurance operating result grew by 14.9% to $79.0m, confirming that the underlying business strengthened year on year notwithstanding the heavier claims burden,” the statement added.
Investment income
Net investment income grew by 8.4% to $54.6m in 1H2026 in volatile conditions. The greater part of net investment income was recurring income from interest, dividends and rentals, which grew by 8.5% to $44.2m and provided a dependable earnings base through the cycle. Active management of the portfolio added a further $9.0m of market-related gains despite the disruption caused by geopolitical tensions during the period.
Underpinning this outcome was steady growth in the financial asset base, with the return on investment at 2.72% from 2.85%.
Dr Corneille Karekezi, Group Managing Director/CEO, said, "Africa Re has delivered a strong first half in a demanding claims environment. Insurance service revenue grew across the great majority of our profit centres, our underwriting discipline held the combined ratio below 85%, and our retrocession programme performed exactly as designed, absorbing the impact of several large losses.
“The moderation in our net result reflects currency movements rather than any deterioration in the quality of our portfolio. with a capital base of $1.44bn, ample liquidity and continued strong ratings, the Corporation is well positioned to support its cedants and to deliver sustainable value to shareholders through the remainder of the year."
Balance sheet and capital strength
Shareholders' Equity rose by 3.3% to $1,442.2m as of 30 June 2026 from 31 December 2025. Total assets increased by 7.5% to $2,329.3m, against total liabilities of $887.1m. Equity therefore accounts for almost two-thirds of the balance sheet, with financial assets of $1,957.4 m covering reinsurance liabilities more than twice over.
Outlook
Management expects continued revenue growth supported by improved renewal retention across its core African markets and selected international portfolios, while maintaining underwriting discipline, active portfolio optimisation and prudent investment management.
The Corporation will continue to monitor claims development, currency volatility and the geopolitical environment closely over the second half of the year.