Continental Reinsurance plc says its written gross premium rose by 6 percent to N12 billion in the third quarter (Q3) of 2014, from N11.3 billion in the corresponding period of 2013.
This development, the company says, indicates continued growth and well on its way to achieve its budget for the year.
Femi Oyetunji, group CEO, Continental Re, says the successful implementation of the pan-African expansion strategy has positioned the company to pursue its strategy to achieve a stronger financial position, and anticipated higher revenue growth that is driven by strong volume growth.
“The key strategic focus areas of our pan-African expansion address delivery of technical capacity, financial capacity, efficiency improvements and skills development in local markets, thereby continuing to establish a strong platform for future growth. The company has shown an overall significant growth across all its locations,” he says.
The company’s profit before tax of N1.69 billion in the period under review is marginally lower than the N1.70 billion in the corresponding period of last year as a result of reduced underwriting profit due to the impact of claims. Its profit after tax rose to N1.36 billion from last year’s figure of N1.35 billion.
Continental Re’s underwriting profit reduced by 23 percent to N1 billion from N1.3 billion, mainly due to worse claim experience. The underwriting profit on the other hand grew by 29 percent from the previous quarter.
The company discloses that its investment income rose by 16 percent in the period under review to N1 billion from N879.3 million in the corresponding period of last year.
It says its retrocession premium at N1.4 million reflects a retrocession ratio of 11.6 percent, which is lower than that of the previous period of 12.4 percent, an indication of better market conditions and management of retrocession costs.
According to the statement, its loss ratio increased to 49.5 percent from 47.9 percent, mainly due to an increase in claims experience and thus reserves, most notably from the oil and gas line of business. It notes that the loss ratio remained static compared with the first half year.
Its net management expenses was 14 percent higher at N1.2 billion than the 2013 comparative figure of N1 billion, while its management expense ratio to the net premium income increased to 10.9 percent from 10.2 percent in the same period of the previous year.
Continental Reinsurance is rated B+ (Good) by AM Best for financial strength and credited for robust risk-adjusted capital. It operates in more than 44 African countries and supports its pan-African footprint with regional offices in Douala – Cameroon, Abidjan – Cote d’Ivoire, Tunis – Tunisia, and two fully licensed subsidiaries in Gaborone – Botswana and in Nairobi – Kenya.
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