27 Key 2023 lessons included the importance of open engagement with member countries and reinsurance partners to regain trust quickly after setbacks. We also learned to strengthen data redundancy and accelerate claims payout implementation. Carrying these learnings forward, we have established backup datasets and strengthened second-line functions like internal audits and enterprise risk management. This is especially crucial as we scale, with business volumes more than doubling from 2022 to 2023. We expect at least 60% growth again in 2024. Aswe grow, our strengthswill enable our continued success. We remain focused on member states’ needs, crafting customised, innovative solutions. We also foster personal resilience to navigate the challenges inherent in pioneering work like ARC’s. With flexibility and perseverance, we turn experiments into progress. Our member-centric approach and commitment to continuous improvement position us well for the opportunities and tests ahead. We are dedicated to serving member countries and building an increasingly effective, sustainable risk pool. Our team Last year was a period of tremendous growth for ARC Ltd. As we expanded our business volumes and forged new commercial relationships across member countries, we knew we needed to expand our team accordingly. We grew our staff by around 50%, bringing on board passionate talent that shares our values and has the technical skills to thrive in our fast-paced, innovative environment. New hires spanned key functions, including business development, underwriting, finance, and operations. We were strategic in building a multilingual team with diverse backgrounds that reflect the incredible diversity of Africa. Hiring locally from within the continent enables us to leverage in-depth regional and cultural expertise. Integrating these talented new team members expanded our capabilities and capacity to navigate complexities and design tailored insurance solutions effectively. This infusion of talent enhanced our technical expertise and empowered us to support member countries across Africa better. Each new team member at ARC Ltd. plays an integral role in driving our impact by applying their specialised skills to build resilience through improved risk management. As we continue growing, our expanded and strengthened team will be essential in fulfilling our mission to create lasting solutions for communities vulnerable to disasters and extreme weather events. Focus areas As we embark on 2024, ARC Ltd. has defined four priority areas that will drive our mission forward and allow us to better serve African Union member states. First and foremost is growth, innovation, and impact. We aim to expand our climate and health insurance solutions across all 55 AU member states, providing each nation with customised products that directly address their unique risks. Reaching this level of scale and diversification will enable us to become financially self-sustaining, fully deliver on our mandate from the AU, and optimise our balance sheet as we spread risk over a wider portfolio. Innovation means continuously developing new ways to prioritise member states’ needs. Our second priority is capital funding and reinsurance. As the global reinsurance market hardens, costs rise while capacity shrinks. Keeping reinsurance expenses in check will be crucial for maintaining affordable premiums for member states. We must also actively manage risk and our balance sheet to uphold our A- credit rating, which gives us greater access to capital markets. This will require judicious use of reinsurance, exploring alternative capital sources like insurance-linked securities, and implementing robust risk management practices. Third is strengthening our people, processes, and overall performance. We want to continue expanding our team to bring in more skills and talent to drive our ambitious growth plans. At the same time, we will automate and streamline processes to improve efficiency as our business volumes increase. Ongoing training and upskilling of our people will also be critical to ensuring we can deliver on our strategy. MESSAGE FROM THE CEO
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