S&P affirms Africa Re rating at ‘A-’, outlook at ‘stable’

Ratings agency Standard & Poor’s (S&P) has recently affirmed the African Reinsurance Corporation’s (Africa Re) financial strength rating at ‘A-’ with a stable rating outlook.

The rating agency said the Lagos-based Pan-African reinsurer has sufficient capital buffer to absorb potential deterioration in its asset credit quality and has also limited exposure to coronavirus-related classes of business.

Africa Re said in a statement: “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,”

“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.” it added.

Africa Re was founded in 1976 by 36-member states of the African Union and the African Development Bank (AfDB). The reinsurer has currently more than 100 African insurance/reinsurance companies from 41-member countries, including Egypt.