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Africa’s Reinsurance Markets Sitting On Gun Powder Waiting To Explode

Africa’s Reinsurance Markets Sitting On Gun Powder Waiting To Explode

Drop in income in the third-quarter of 2017 is still impacting reinsurers in Africa notwithstanding growth in written premiums recorded by a firm like African Reinsurance Corporation in the first quarter of 2018. Many of the firms were yet to update their websites concerning their written premiums of the first quarter of 2018, a sign that all is not well. This affirms experts’ worry that Africa’s $6.8bn reinsurance market will decline this year, given that many insurance firms’ net income in the first three months of 2017, waned by 73.61 per cent to N604.56 million in contrast with N2.29 billion that was the case in March 2016. Again, by December 2017, their net income dropped by 20.57 percent to N2.47 billion as against N3.11 billion in 2016, writes Odimegwu Onwumere, winner of the 2018 Continental Re’s Pan African Journalist of the Year award

Despite the growth in written premium recorded by few reinsurance firms in Africa in the first quarter of 2018, the predictions by professionals that insurance markets in Africa would be defectively punched by rising reinsurance cost this year, holds water. Start your free trial. Ad Everyone needs a website. Make
yours with Squarespace and stand out. … Squarespace Learn more While a firm like the African Re said it recorded a gross written premium of 26.31%, from US$ 167.13 million in March 2017 to US$ 211.10 million in 2018, the record does not represent what reinsurance firms on the continent are going through.

The inspiring performance made by Africa Re revealed the flourishing 1 January renewals in most of its markets – the South African reinsurance market had some difficulties.

Opinion leaders stated that in spite the increase in premium made by African Re, unfavourable claims occurrence with numerous huge and misfortune losses, piloted to an approximately break-even underwriting outcome.

The trade tariff disagreement between China and the US, joined with an increase in the US Federal Reserve interest rates, saw to more problems in the international financial markets in the first quarter of 2018.

According to a statement by Corneille Karekezi, Africa Re’s GMD/CEO, many of the financial markets endured a modification during the period under review. Hence, Africa Re’s investment earnings dropped to US$ 3.34million from US$ 13.97 million which was gained in the first quarter of 2017. Looking for One and Only? Ad Spend Your Summer With Charming
Women Ukrainiancharm Try now Notwithstanding, the corporation didn’t sleep […]

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