AM Best<\/b>\u00a0has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of \u201cbbb-\u201d (Good) of Compagnie Commune de R\u00e9assurance des Etats Membres de la CIMA (CICA-RE) (Togo). The outlook of these Credit Ratings (ratings) is stable.<\/p>\n
The ratings reflect CICA-RE\u2019s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and marginal enterprise risk management.<\/p>\n
CICA-RE\u2019s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is expected to remain comfortably at the strongest level, as measured by Best\u2019s Capital Adequacy Ratio (BCAR), with organic capital generation likely to be sufficient to support the company\u2019s strategic growth plans. CICA-RE\u2019s balance sheet strength assessment also factors in its good financial flexibility, demonstrated through successful capital raises from existing and new shareholders in recent years, which have grown paid-up capital to XOF 60 billion (USD 95 million) at year-end 2025. CICA-RE holds a well-diversified investment portfolio by asset type and country; however, assets are concentrated in the Conf\u00e9rence Interafricaine des March\u00e9s d\u2019Assurances (CIMA) region, which exposes the company\u2019s balance sheet to elevated economic, political and financial risks.<\/p>\n
CICA-RE has a track record of adequate operating performance, demonstrated by a five-year (2020-2024) weighted average return-on-equity of 9.4%. Over this period, the company has reported a profitable technical performance, evidenced by a five-year (2020-2024) weighted average combined ratio of 95.1% (as calculated by AM Best) for its non-life business. CICA Re\u2019s earnings are supported by solid investment income, highlighted by a five-year weighted average net investment return (including unrealised gains\/losses) of 5.7%. AM Best expects the company to have remained profitable in 2025, despite recent claims pressures on its underwriting performance.<\/p>\n
CICA-RE\u2019s neutral business profile assessment reflects its good market position in the CIMA region, where the reinsurer benefits from compulsory cessions on reinsurance and direct insurance businesses, as well as established direct relationships with local cedants. CICA-RE\u2019s gross written premiums (GWP) have grown strongly in recent years, with a five-year compound average growth rate of 16%. This was supported by revisions to the legal cessions\u2019 structure in the CIMA region in 2020, and the company\u2019s focus on regional and international expansions. The assessment considers CICA-RE\u2019s good diversification by lines of business and product type, as well as its small size by global standards, with GWP of XOF 137 billion (USD 217 million) in 2024.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
AM Best\u00a0has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of \u201cbbb-\u201d (Good) of Compagnie Commune de R\u00e9assurance des Etats Membres de la CIMA (CICA-RE) (Togo). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect CICA-RE\u2019s balance sheet strength, which AM Best assesses as very strong, …<\/p>\n","protected":false},"author":2,"featured_media":11350,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[9,1310],"class_list":["post-11349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-business","tag-general"],"yoast_head":"\n