65 They both have extensive Board experience in directorship roles and expertise across the African political network, meteorology, climate change, insurance, the financial sector and development in Africa. The transition was smooth, the Board remained stable, and we maintained good governance. Dave and Mkwezalamba replaced Jennifer Blanke and Phillip Pettersen, whose mandates ended in April and whose contributions to the work of the Board and the company have been invaluable. Building relationships Our focus on inclusivity and deepening engagement with our members, partners and donors remains a priority. Building these relationships is central to our work and far from being a prescriptive organisation, we welcome feedback on our products and optimising how we work together. The members’ retreat was created as an important forum for these discussions and once a year we come together from across Africa to reconnect, share and strategise. This year, our retreat was held in July in Lomé, Togo and it was our largest meeting since our inaugural gathering in 2021. Members participating in our risk pool and new and established partners who have contributed their invaluable support came together to reflect on past achievements, share experiences and discuss strategic plans for our shared goals and future successes. This year, we saw an enhanced level of honest and transparent discussions, which were moderated to surface challenges and determine a way forward. We asked our Class A members for feedback on our delivery and products, while Class C, our founders, reaffirmed their commitment to partner with us and to continue to fund the business. We are grateful to all our donor partners who are funding ARC Ltd. and subsidising premiums for governments through Smart Premiums to enable them to provide coverage to their citizens. We are also grateful for the increased support this year and our new partnership with the United States Government. This landmark US$11.7 million agreement will safeguard food security in Africa and strengthen climate resilience by increasing access to parametric insurance. On the ground, it will protect vulnerable smallholder farmers facing increasing climate change-related disasters while assisting governments to better respond to climate risks. The grant is indicative of the trust that donor partners have in our company and its ability to deliver. It also reflects our potential to expand our capital base from loans, which we currently have from the German and British governments. Transitioning to IFRS 17 In 2023, IFRS 17 became a key focus. This international accounting standard for insurance contracts comes with new requirements to increase transparency and accountability in reporting. We transitioned our audit reporting from IFRS 4 to IFRS 17 successfully, and we were among the first handful of companies globally to implement IFRS 17. Most had started with their December 2023 audit, but we tackled the Quarter 3 audit in September. Our concerns had revolved around our audits being unqualified and ensuring we were IFRS 17 compliant, but we transitioned seamlessly. This was an important milestone and achievement for us. #1 OUT OF 305 COMPANIES IN THE SOUTH AFRICAN INSURANCE INDUSTRY IFRS 17 BECAME A KEY FOCUS IN 2023. KEY FACTOR 2 TECHNICAL EXPERTISE IN AREAS LIKE RISK MODELLING AND CLIMATE DATA ANALYSIS $13 MILLION PROFIT CH I EF OPERAT I NG OFF I CER ’ S REPORT
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