• Klapton Reinsurance's insurance service result surged 80.8% to ZMW 668 million in 2025, driven by a world-class combined ratio of 78%
• The company's deliberate shift to a more focused and coherent book, prioritizing counterparty alignment and contract certainty, contributed to the strong performance
• It completed a successful direct listing on the Lusaka Securities Exchange and received a Moody's Insurance Financial Strength rating upgrade to Caa1 with a stable outlook

Harare-  Klapton Reinsurance has posted its strongest operational results since inception, with the insurance service result, the clearest measure of core reinsurance profitability under IFRS 17, surging 80.8 percent to ZMW 668.0 million in the year ended 31 December 2025 from ZMW 369.6 million the previous year.

This exceptional outcome was achieved on a world-class combined ratio of 78 percent, well below the global reinsurance industry average of 91 to 95 percent and clear proof of superior risk selection, disciplined pricing and portfolio optimisation in an increasingly selective market that rewards underwriting quality over volume.

Insurance revenue rose a more measured 3.3 percent to ZMW 3.066 billion, reflecting the company’s deliberate strategic shift from aggressive expansion to a more focused and coherent book.

Management emphasised a refined approach that prioritises counterparty alignment, contract certainty and predictable outcomes, particularly in the high-quality United States collateralised segment and through successful renewal of key quota-share treaties. The near-doubling of the insurance service result on only modest top-line growth demonstrates that the improvement stems from genuine underwriting alpha rather than one-off reserve releases or benign market conditions.

Profit after tax increased 64.1 percent to ZMW 387.7 million, supported by the robust underwriting performance and tight control of administrative expenses. Headline total comprehensive income, however, fell sharply to ZMW 38.4 million from ZMW 333.6 million in 2024, distorted by a ZMW 349.4 million foreign-currency translation loss recorded in other comprehensive income.

This purely accounting impact arose from the appreciation of the Zambian kwacha against the group’s US-dollar functional currency and has no effect on cash flows, solvency or the economic value of the globally diversified, predominantly USD-denominated portfolio that now spans more than 120 countries.

Group equity still grew to ZMW 696.3 million while total assets expanded 15 percent to ZMW 3.76 billion, reflecting the underlying strength of the balance sheet. The results come at a pivotal moment for the company. Klapton Re completed a successful direct listing on the Lusaka Securities Exchange in late March 2026, accompanied by a substantial share placement and an increase in authorised share capital to 11.2875 billion shares.

The listing has injected fresh capital, boosted transparency and enhanced market visibility. At the same time, Moody’s Ratings upgraded the company’s Insurance Financial Strength rating to Caa1 with a stable outlook, one notch above Zambia’s sovereign ceiling, validating the quality of its diversified exposures and reduced reliance on local-currency risk.

Analysts and investors should focus on the operational reality rather than the accounting volatility. The 78 percent combined ratio and 81 percent growth in the insurance service result highlight sustainable earnings power and a portfolio now better aligned with the market’s preference for disciplined counterparties. The USD-functional currency and international diversification provide a natural hedge against local volatility, meaning the company’s cash-generation capacity and ability to meet claims remain robust regardless of kwacha movements.

Klapton Re therefore enters 2026 from a position of genuine strength. With enhanced credibility from the Moody’s upgrade, fresh capital from the listing and a more selective, lower-volatility book, the company is well placed to deepen relationships in core markets and pursue disciplined growth opportunities without compromising its underwriting standards.

The first set of post-listing quarterly updates and any guidance on capital deployment will be the next key milestones to watch.

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