S&P Affirms Africa Re ‘BBB’ Ratings

Standard & Poor’s international insurance rating service has reaffirmed the ‘BBB’ long-term counterparty credit and insurer financial strength ratings of African Reinsurance Corp. with a “stable outlook.”

S&P noted a good operating performance and its leading role in the difficult African insurance market as important factors. While the company has a small capital base, currently around $50 million, this is expected to grow to $100 million by 2003, “following investment by external investors.”

Africa Re remains in a strong position despite increasing competition, S&P indicated. It is “a major player in regional reinsurance, with a solid quota share participation in each African country.”

Premiums rose by 10 percent in 2000, while Africa’s Re’s loss ratio declined from 63.6 percent to 55.9 percent during the same period.