Continental Re increases gross premium by 25%
Africa’s leading private pan-African reinsurer, Continental Reinsurance Plc’s gross premium income rose by 25 per cent to N 21.86 billion in the nine months financial period of 2017, from N17.51 billion in the corresponding period of 2016, while its underwriting profit grew by 178 per cent to N 2.08 billion from N746.72 million in the period under review.
The company noted that this reflects the outcome of targeted underwriting actions during the year including increased underwriting discipline.
A.M. Best has also affirmed its Financial Strength Rating of B+ (good) and the Long-Term Issuer Credit Rating of “bbb,” showing the outlook of these Credit Ratings are stable.
The results were buoyed by a 77 per cent increase in investment and other income which stood at NGN 1.9bn from N1.07bn despite a 36 per cent decline in profit before tax resulting from the impact of foreign exchange movement in the period under review.
Femi Oyetunji, group MD/CEO said, “We continuously monitor localised cycles of growth or challenges across our markets and adjust our business model to adapt, as each of our regional offices and subsidiaries play a significant role in any given reporting period. Our primary focus of improving underwriting fundamentals and capital management to ensure we meet the present and future needs of our business rests.”
According to the A.M. Best report, the rating reflects Continental Re’s very strong balance sheet strength, adequate operating performance and neutral business profile.
The report further notes that the company’s balance sheet strength is supported by a strong level of risk-adjusted capitalisation, which A.M. Best expects to remain at a very strong level over the medium term.
According to the report, claims expenses reduced by four per cent to N7.99bn to N8.36bn in September last year, while reinsurance reserves rose by six per cent to N14.54bn from N13.7bn in third quarter of 2016.
The company disclosed that it’s profit before tax stood at N3.23bn at the end of September this year, from N5.03bn in the corresponding period of 2016, while profit after tax was N2.49bn from N3.75bn in the period under review.
Continental Re said that construction of its headquarters in Lagos was underway after a groundbreaking ceremony.
It said the new headquarters will be a state of the art landmark building with ultra-modern and eco-friendly features.
Located in Victoria Island, it added that the new headquarters will provide Continental Re with a physical footprint in Nigeria.
“Our headquarters will be an inspiring work environment that clearly reflects who the company is today,” Oyetunji stated.
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