Continental Reinsurance plc has recorded a profit before tax of N1.1 billion in first quarter (Q1) 2015 financial period from N764 million in the same period of 2014, showing a 46 percent increase.
Femi Oyetunji, group managing director, Continental Re, says the performance reflects the impact of the gradual evolution of the company from 2011 that positioned it to directly exploit the benefits of a diversified client base of over 200 insurance entities across Africa.
“Underpinning our strategy is our commitment to sustainable growth and profitability through localisation of our operations in key markets. We aim to continue to escalate our returns from the investments we have already undertaken that are focused on meeting market demand and ultimately positioning our company for sustainable growth and profitability,” says Oyetunji.
He says various projections still hype opportunities and considerable potential for future growth on the continent, saying the company’s profit after tax rose by 38 percent to N837 million in the period under review from N606 million in the corresponding period of 2014.
Its gross premium income rose by 12.6 percent to N4.9 billion in Q1 of this year from N4.3 billion in Q1 of 2014.
Continental Re recorded a retrocession premium of N413 million, which is a ratio of 8.4 percent from a figure of N429 million in the corresponding period of 2014, at the ratio of 9.8 percent, an indication of better management.
Underwriting profit decreased by 26 percent to N479 million in 2015 from N651 million in 2014, which still reflects strong performance displaying positive outcomes across most key technical indices but dampened by an adverse development in the claims ratio due to settlement of legacy US dollar denominated claims that were inflated by the effects of negative currency movement experienced in the last quarter of 2014.
Its loss ratio increased to 49.3 percent from 42.9 percent due to the impact of high claims for both life and non-life businesses.
The company’s total assets grew by 13.3 percent to N30.7 billion in 2015 from N 27.2 billion in 2014, its shareholders’ funds rose to N16.7 billion from N14.7 billion and return on equity for the quarter stood at 5 percent, which was higher than 4 percent recorded last year.
“The company is poised to build upon this promising start to the year to deliver on expectations through the second quarter to year end by continuing to leverage its strong financial condition and market positioning in Africa. Primary focus areas remain sustained volume growth, improved operational efficiencies, and development of critical skills,” Oyetunji says.
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