By PATRICK ALUSHULA

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African Trade and Investment Development Insurance (Atidi) net profit for the financial year ended December 2023 tripled to a record $69.1 million on increased uptake of the insurer’s political and credit risk products on the continent.

The multilateral development insurer, which has over 24 member countries including Kenya, Uganda and Tanzania, saw the net earnings rise from the restated 2022 net earnings of $22.7 million. The 2022 net profit was initially reported as US$32.8 million but was restated in line with the global switch to International Reporting Standard (IFRS) 17 from IFRS 4.

 “We are happy to report that 2023 has been the best financial performance in Atidi's history, " said Atidi CEO Manuel Moses during the annual general meeting in Zambia.

“It is a testament to the soundness of our business fundamentals and strategy, our resilience and the quality of the risk-mitigating solutions we provide and lays a solid foundation for more rewarding years ahead.”

Atidi netted new business worth $226 million last year, a 70 percent rise from $133 million in the previous year as more African governments and private businesses made use of Atidi’s products.

The year saw new countries such as Angola and Mali join Atidi while existing member countries such as Senegal, Tanzania, Benis, Côte d'Ivoire, Niger, Ethiopia, Nigeria took up new insurance. Burkina Faso and Chad became the latest member states in early 2024.

The new business took Atidi's gross exposure—the value of outstanding insurance covers—to $9.6 billion at the end of 2023, being a 19 percent growth from $8.1 billion at the end of the preceding year.

Atidi's total assets jumped by 27 percent to $837 million while shareholders’ funds rose by a quarter to $700 million from $516 million.  Atidi now targets to hit a capital base of $1 billion by end of 2027.

At the AGM, shareholders approved a dividend of $17.3 million, more than double from the $8.3 million paid on the previous year’s performance.

“All these are testament of the resilience of Atidi amidst a difficult period for most of African economies as well as a sound strategy and purpose and commitment to its execution.  The countries continue to see the benefits that Atidi offers to them and therefore the increased use of our political risk and commercial risks policies,” said Gladys Karuri, chief finance officer at Atidi.

Atidi is rated by both S&P and Moody’s’ and has maintained its strong A rating at S&P and A3 at Moody’s even as a number of the countries it operates in faced credit downgrades.

The insurer started political risk insurance in 2001 with the backing of Common Market for Eastern and Southern Africa and World Bank, with the focus being to encourage foreign investors to invest in Africa. Atidi then followed it up with credit risk, giving private companies the comfort to trade with each other.