Investor Relations

When we set out our result target for 2022, no one could have imagined the geopolitical and macroeconomic upheavals the year would have in store: the Russian military intervention and the ensuing economic turbulence were not foreseeable. Consequently, our investments were subject to significant volatility. The ongoing conflict between Russia and Ukraine has had a significant impact on energy costs, contributing to the escalation of global inflation that was already on the rise. Considering this situation, we have taken measures to accommodate the anticipated increase in claims expenditure due to the upward trend in inflation.

According to data from the IMF, the global economy demonstrated a growth rate of 3.4% in 2022, surpassing the earlier forecast of 3.2% that was made in October 2022. However, it is essential to note that this figure fell significantly short of the initial projection of 4.4% put forth in January 2022. This discrepancy arises from the anticipation of a gradual return to normalcy in the global economy, which, unfortunately, did not materialize as expected. Key economies, including the United States, China, and the Euro Area, reported slower growth rates compared to the previous year, with growth estimated at 2.1% (compared to 2.1% in 2021), 3.0% (down from 8.5% in 2021), and 3.5% (down from 5.4% in 2021), respectively.

In Africa, while many economies continued their recovery from the pandemic’s effects, the growth remained insufficient to return them to pre-pandemic levels. According to the African Development Bank, in 2022 Central Africa recorded significant growth of 4.7%, driven by favourable commodity prices, while Southern Africa decelerated to approximately 2.5% due to subdued growth in South Africa. West Africa’s growth stood at 3.6%, reflecting the slowdown in Côte d’Ivoire and Nigeria, and North Africa declined to 4.3% due to a sharp contraction in Libya and drought in Morocco. East Africa also experienced a slowdown to 4.2% due to rising inflation and climate shocks. The African continent experienced varied economic dynamics in 2022, with some regions showing resilience and growth while others faced challenges such as political instability, currency fluctuations, and infrastructure deficits. Our ability to adapt to these regional nuances while maintaining a long-term perspective remained vital.

The regulatory environment for the industry continued to evolve. Compliance with changing regulations, including solvency requirements and reporting standards, remained a priority. We embraced these changes as opportunities to enhance our governance, risk management, and transparency. Also, the rapid pace of technological advancements presented both opportunities and challenges. The increasing digitalization of the insurance and reinsurance value chain required us to invest in technology to remain competitive and relevant. We continued our digital transformation journey to improve efficiency and offer innovative solutions to our clients.