African Reinsurance Corporation African Reinsurance Corporation (Africa Re) Group Managing Director and Chief Executive Officer Corneille Karekezi. FILE PHOTO | NMG
BY BRIAN NGUGI
Global ratings agency Standard & Poor’s has affirmed the African Reinsurance Corporation (Africa Re) financial strength rating at A-, with a stable outlook.
The Lagos-based Pan-African reinsurer said the agency noted it has sufficient capital buffer to absorb potential deterioration in its asset credit quality and it also has limited exposure to Covid-19 related classes of business.
“The rating agency considered Africa Re’s strong brand and reputation, with many cedants across Africa, as a key differentiator relative to other international and regional players on the continent,” said Africa Re in a statement.
“With a broad diversification of its underwriting portfolio, Africa Re is able to ensure stability in its operating performance, cushioning the effect of weaker economic conditions and the higher-risk operating environment that characterises most of Africa.”
Africa Re was established in 1976 by 36-member states of the African Union (AU) and the African Development Bank Group. Currently it has 41 member states including Kenya, and more than 100 African insurance/reinsurance companies from the 41-member countries.