African Re blames currency depreciation for challenging year in Q3 results

African Reinsurance Corporation (Africa Re) said the depreciation of its main operating currencies combined with losses in Ghana and Nigeria has led to it being a challenging year for the company, in its third quarter results.

The company reported a decline in underwriting profit in the third quarter of 2016. Its profit decreased to $0.093 in the third quarter compared with $13.5 million in the second quarter to due to large losses incurred in the South African markets.

The company’s gross written premiums declined in the first three quarters of the year by 7.6 percent to $463 million at the end of September 2016, compared with $501 million in the same period a year earlier.

Chief executive officer and managing director Corneille Karekezi said that 2016 has been a challenging year for the corporation.

It added that cancellation of some loss-making businesses has led to the decline in its gross written premiums. African Re reported major losses in Ghana and Nigeria markets this year.

However, the group has managed to achieve 65 percent growth in its investment income, which increased to $36.2 million in the nine-month period of 2016 compared with $22 million in the same period a year earlier.