A.M. Best has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the issuer credit rating to “a” from “a-” of African Reinsurance Corporation (Africa Re). The outlook for each rating has been revised to stable from positive.
As by AM Best “The upgrade reflects Africa Re’s excellent risk-adjusted capitalisation, consistently strong operating performance, and robust market position in the increasingly competitive African reinsurance sector. Additionally, the ratings factor in the framework in Additionally, the ratings factor in the framework in place to mitigate Africa Re’s exposure to the heightened political and economic instability on the continent.
Africa Re’s risk-adjusted capitalisation remains at an excellent level, supported by robust earnings derived from its expansion within its core African market. Additionally, A.M. Best expects the corporation to continue benefitting from its strong financial flexibility, which is derived from the long-term capital support of shareholders, owing to its shareholding structure and status as a Pan-African reinsurer. Africa Re’s shareholders consist of member states, African and international (re)insurance companies and supranational organisations. Prospectively, A.M. Best expects strong internal capital generation, a conservative balance sheet and excellent financial flexibility will likely continue to underpin Africa Re’s financial strength