Home›Insurance›Reinsurance›AM Best says Sub-Saharan Africa reinsurers stay strong…

AM Best says Sub-Saharan Africa reinsurers stay strong as conditions moderate

AM Best cites natural resources, long term growth and low insurance penetration as tailwinds for reinsurance capacity growth, while warning geopolitical risks could impact certain lines and territories.

Reported · Written up by our desk · Reinsurance

Reinsurers operating across sub Saharan Africa have continued to post strong underwriting performance even as market conditions show signs of moderation, according to AM Best.

In its latest Best’s Market Segment Report, the ratings agency said the region’s reinsurance market still offers opportunities for further profitable expansion, pointing to an extensive natural resource base, long term economic growth prospects and relatively low insurance penetration.

AM Best added that those underlying conditions could support increased insurance activity and greater demand for reinsurance capacity over time.

The company also cautioned that the operating environment remains exposed to external risks, including renewed geopolitical uncertainty from the continuing conflict in the Middle East, which could affect reinsurers depending on their exposure to specific territories and lines of business.

More like this

Sources