Continental Re announces N2.92 billion profit

Continental Reinsurance Plc has announced Profit Before Tax (PBT) of N2.92 billion for the 2015 financial year, representing 83.61 per cent increase compared with N1.59 billion in the corresponding period of 2014.

According to the firm, gross premium income was N19.74 billion in 2015, an increase of 22 per cent over the N16.4 billion achieved in the comparable period of 2014.

Shareholders’ dividend payout also rose at a yearly growth rate of 12 per cent over the last five years.

Speaking at the 29th yearly general meeting, in Lagos, the Chairman of the company, Mrs. Nadia Fettah-Alaoui, who was represented by the Non-Executive Director, David Sobanjo, said we are pleased with our performance over the past year. I am confident that we have the right team that will continue to provide credible services to our clients.

According to him, the company currently operates from six strategic locations across Africa through a combination of regional and subsidiary offices.

“Although the contribution from the Lagos office rose by 10 per cent year on year, its contribution to the group constituted 54 per cent of the total non-life business, in 2015 down from 60 per cent in 2014. This reflects ongoing success in the strategy to pursue growth in new territories thereby reducing concentration in the Nigerian market,” he stated.

Commenting on the performance, the Group Managing Director/Chief Executive Officer, Continental Reinsurance, Dr. Femi Oyetunji, said: “We maintain a firm commitment to grow our company sustainably through volume growth, improved operational efficiencies, and development of critical skills. This bolsters our confidence in our optimism that we will continue to deliver top and bottom line growth on a sustained basis for our shareholders and other stakeholders.”

Dr. Oyetunji thanked shareholders and board members for their support, adding that the company was in another challenging year, because of the poor economic performance seen in most African countries mostly due to low commodity prices and volatility from dollars interest rate. In the insurance and reinsurance space, competition is steeper and the excess capacity of Europe, the United States and Asia is now targeting markets across Africa.  Currency risk and regulatory risk has become top of mind issues, he remarked.

Speaking further, he said, the board and management of Continental Re are finalising a strategic plan to strengthen the company, to ensure it increases its market share and continue to provide credible reinsurance security and services to clients and sustainable value to shareholders.

Meanwhile, the company also announced the second edition of the Pan-African Re/Insurance Journalism Awards. The competition, open to both English and French-speaking journalists, recognises the outstanding work of Africans who cover the insurance and reinsurance sector across the continent. It was launched in 2015. The winners of the first edition were announced during an award ceremony held in the Seychelles in April this year.