Africa Re faces losses in South Africa and Middle East in H1 2017

Africa reAfrica Re provides capacity and the technical support to assist in the development of the local oil and gas markets. (Image source: Africa Re)African Reinsurance Corporation (Africa Re) has announced that the losses in South Africa and in the Middle East pushed down the company’s net profit to US$7.6mn in the first half of 2017 from US$32.6mn in the same period in 2016

According to the company, the fire incident in Cape Town in South Africa and shut down of half of the capacity in Abu Dhabi National Oil Company (ADNOC) in the Middle East resulted in the downfall.

In June 2017, a fire swept across the Knysna, reportedly killing eight, with almost 10,000 people evacuated as a storm ravaged Cape Town and the Garden Route. According to the local media, up to 20 suburbs around the Cape Town were due to the fire storm.

In January 2017, ADNOC shut half of its capacity at its 800,000 bpd Ruwais refinery after a fire incident. According to the sources, ADNOC closed a section of the refinery that doubled its capacity in 2015.

Africa Re explained that the during the first six months in 2017, the company’s gross written premium grew by 11.8 per cent year on year to US$372.6mn. According to the company, it was driven by partnerships, stability in transaction currencies and due to the new treaties signed in West Africa.

During the same period, the company’s investment income grew by 30.1 per cent year on year to US$26.8mn, which was driven by equity and bonds performance as well relative stability South African currency against the US dollar.

Established in 1976 in Cameroon, Africa Re is a reinsurance company based in Lagos, Nigeria. The company operates in 41 countries of the African Union through approximately 107 insurance and reinsurance companies.

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