Best’s Special Report: Economic Challenges Exacerbate Risks Faced by (Re)Insurers in Africa
LONDON–(BUSINESS WIRE)–#insurance–The deteriorating risk environment in many African countries is weighing on (re)insurers, despite their efforts to mitigate the impact of macroeconomic challenges, according to a new special report from AM Best.
AM Best-rated (re)insurers operating in Africa typically hold robust capital buffers, underpinned by generally low underwriting leverage and relatively conservative investment portfolios by asset class. However, the declining creditworthiness of many African debt issuers has led to increased asset risk and will test the resilience of the continent’s (re)insurers’ balance sheets.
In its new Best’s Special Report, “Economic Challenges Exacerbate Risks Faced by (Re)Insurers in Africa,” AM Best notes (re)insurance companies operating in Africa and other emerging markets are typically exposed to heightened levels of economic, political and financial system risks. In recent years, these risks have been exacerbated by external shocks, such as the COVID-19 pandemic.
Soaring commodity prices, as a result of supply-chain disruptions and price shocks related to the Russia-Ukraine conflict, have resulted in increased inflation and financial instability across Africa, particularly for those markets reliant on the import of fuel and other commodities.
Softer demand conditions may hamper growth and reduce government revenue, adding to the list of existing challenges faced by many African economies.
To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=331392.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. Contacts
Ben Diaz-CleggSenior Financial Analyst+44 20 7397 0293ben.diaz-clegg@ambest.com
Richard BanksDirector, Industry Research – EMEA+44 20 7397 0322richard.banks@ambest.com
Dale KirbyFinancial Analyst, Analytics+44 20 7397 0276dale.kirby@ambest.com
Timothy PrinceDirector, Analytics+44 20 7397 0320timothy.prince@ambest.com
Edem KuenyehiaDirector, Market Development & Communications+44 20 7397 0280edem.kuenyehia@ambest.com
