26 Our goal entering 2023 was growth through expanding and diversifying the insurance portfolio. The success of this depends on the number of countries participating in ARC Ltd. programmes. Lesley Ndlovu | CEO, ARC Ltd. MESSAGE FROM THE CEO Eligible countries must complete capacity building and obtain a certificate of good standing. It also depends on the range of products we offer. African countries face increasing climate and health risks like droughts, floods, cyclones, and Ebola; the more products we provide, the better we meet countries’ needs and grow our insurance pool. Paying claims rapidly after disasters provides our greatest impact. We aim to pay within 10 working days, so that countries have immediate resources to respond. In 2023, we paid a claim to Burkina Faso following a drought. Its crop policy payout amounted to $4.454 million, and its Replica crop policy payout was $2.628 million. We also oversaw the implementation of 2022 claims. Our model of contingency planning and rapid response is highly effective. In addition, we retained our #1 ESG rating, making us the top global insurance company for the third straight year. We also received a credit rating upgrade from Fitch to A-, one of the highest for African insurers and reinsurers. This demonstrates our ESG impact and financial strength. Donor partners play a pivotal role in our business model. We work with them in three ways: premium subsidies to enable more countries to participate, capital provision to underwrite more risk, and institutional development to improve products and services and onboard new countries. In 2023, we welcomed new partners like the US State Department to enhance our work serving African countries facing more frequent and severe natural disasters. Lessons learnt The 2023 pool year presented a critical challenge for ARC Ltd. to rebuild stakeholder trust after the data issues in 2022. Regaining the confidence of member countries and reinsurance markets was our top priority. We took a transparent, collaborative approach with member countries, treating them as partners rather than clients. We presented our detailed plan to resolve the data problems and incorporated their feedback. Switching to new, verified datasets restored countries’ faith in ARC Ltd.’s models and processes. Our sincere engagement resonated, evidenced by the enthusiastic participation of over 20 countries in the 2023 pool. Bolstered by the renewal of trust, we secured a heavily oversubscribed reinsurance programme. We underwrote a record $56.1 million in gross written premiums for the 2023 pool, proving the markets’ restored confidence in us. This experience underscored the immense value of continuous learning and improvement at ARC Ltd. We integrate lessons from each pool year to refine our processes and structures. This feedback loop drives us to serve members’ needs better and deliver more effective, efficient solutions year after year. MESSAGE FROM THE CEO
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