The African rating agency Global Credit Rating (GCR) has confirmed Ethio Re [4]'s financial strength ratings. The Ethiopian reinsurer has been assigned a "B-" rating for its international business and an "AA" (ET) for its domestic operations. The outlook for both ratings remains stable.
This rating is one of the pillars of Ethio Re's new "Vision 2030" strategic plan. GCR's decision reflects the reinsurer's solid financial profile, characterized by strong risk-adjusted capitalization, underwriting profitability and return on investment.
The reinsurer's share capital stood at 2 billion ETB (36 million USD) at the end of June 2023. A further 1 billion ETP (18 million USD) is expected to be injected over the next four years. The reinsurer also benefits from a legal cession, which gives it a strong competitive position on the local market.
Ethio Re's gross written premiums amounted to 25.9 million USD at the end of June 2022, representing a 19% growth over one year.