AM Best Affirms Credit Ratings of Compagnie Commune de Réassurance des Etats Membres de la CIMA

(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Compagnie Commune de Réassurance des Etats Membres de la CIMA (CICA-RE) (Togo). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CICA-RE’s 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.

CICA-RE’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is expected to remain comfortably at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), with organic capital generation likely to be sufficient to support the company’s strategic growth plans. CICA-RE’s 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 Conférence Interafricaine des Marchés d’Assurances (CIMA) region, which exposes the company’s balance sheet to elevated economic, political and financial risks.

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’s 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.

CICA-RE’s 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’s 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’ structure in the CIMA region in 2020, and the company’s focus on regional and international expansions. The assessment considers CICA-RE’s 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.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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.

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