Africa Re's BBB ratings affirmed by S&P

LONDON - Ratings agency Standard & Poor's yesterday affirmed its triple - B - long term counter party credit and insurer financial strength ratings on African Reinsurance Corp in a move which it said reflected the reinsurer's strong business position and important role in the African market. S&P noted that Africa Re had seen healthy premium growth in 2000 despite the devaluation of local currency-denominated acceptances against the US dollar. On the other hand S&P suggested continued competition would put pressure on rates going forward. Equally the ratings agency predicted a deterioration in underwriting profitability due to a "gradual shift in emphasis to less profitable non-African business". Nevertheless it said it expected Africa Re's combined ratio to remain below 100%.