Africa Reinsurance Corporation (Africa Re) has again increased it capital to $300million to consolidate the firm’s capital base.
Mr Musa AL NAAS, Chairman of the Board of Directors told the shareholders that that the Corporation has called for the increase of its authorized capital from $100 million to $300 million, by the distribution US$1 million bonus shares and the issuance of one million new shares.
The reason, AL NAAS adduced for the distribution of the shares by the company was a concerted effort to consolidate the Corporation’s financial base, while ensuring returns on shareholders’ investment.
The re-insurer recorded a net profit of $64.86 million in the financial year ended December 31, 2010 compared to US$ 44.30 million in the previous year whilst the company announced premium income of $627.53 million, representing 16.99 percent growth against $536.38 million posted in 2009.
At the re-insurer’s Annual General Meeting in Addis Ababa, Ethiopia recently,it also showed a transfer of $32.43 million to general reserves; $800,000 to reserve for loss fluctuation and the balance of $27.65 million to retained earnings.
He posited that the corporation would continue to extend its marketing network, having recently established in September 2010, Africa Retakaful, the Islamic Reinsurance subsidiary with local office in Addis Ababa.
AL NAAS stated that the company would continue to review its underwriting guidelines, investment projects or the strengthening of the attraction, recruitment and retention of the sharpest talents in insurance/ reinsurance.
He said that despite the challenges in the environment, the Corporation’s financial strength got (A-) by two rating agencies – Standard & Poor’s and A.M. Best.