AM Best has revised the outlooks to positive from stable and affirmed the financial strength rating of B (Fair) and the long-term issuer credit rating of “bb+” (Fair) for WAICA Reinsurance Corporation PLC, a Sierra Leone-based composite reinsurer.
The ratings are based on AM Best’s assessment of WAICA Re’s balance sheet strength as strong, along with strong operating performance, a limited business profile, and marginal enterprise risk management.
WAICA Re operates in more than 90 countries and maintains a diversified underwriting portfolio. AM Best said the change in outlook reflects its expectation that the company will continue to expand its market presence and produce strong operating results.
In recent years, WAICA Re has undertaken strategic initiatives to bolster its market presence and financial capacity. In 2024, the company launched AFIN Bank UK Limited with an initial capital of £23.5 million, positioning it as a link between African insurance expertise and global financial markets.
The bank is part of a five-year plan aimed at tripling capital to £62 million, enabling greater access to international financing for African insurance operations.
Since beginning operations in 2012, WAICA Re has grown annual premium income from US$7 million to US$255 million by 2023, reflecting significant expansion both within Africa and internationally.
In 2023, the company also completed a US$23.469 million rights issue, raising paid-up share capital to US$88.439 million and increasing shareholders’ funds to US$161.555 million, a move intended to reinforce its balance sheet and support growth initiatives.
That same year, gross written premium climbed 40% to US$214.2 million from US$153.3 million in 2021, with facultative business accounting for 75% and treaty business making up 25%.
WAICA Re has lowered investment risk in recent years by allocating more assets to territories with lower country risk, although a substantial portion of its holdings remain in sub-Saharan Africa, where economic, political, and financial system risks are higher.
AM Best considers WAICA Re’s operating performance strong, citing return-on-equity results in recent years that have exceeded benchmark interest rates in its markets. Earnings are supported by technical performance in both treaty and facultative reinsurance.
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