Continental Reinsurance posts N4.36b pre-tax profit
Continental Reinsurance Plc has recorded N4.36 billion pre-tax profit in its full year operations against N3.57 billion achieved in the corresponding period in 2017.
Specifically, the company’s audited result showed 22 per cent rise in pre-tax profit to N4.36 billion, from N3.57 billion in 2017, with investment income growing strongly by 44 per cent to N5.36 billion. The company’s gross premium income increased by a sturdy 15 per cent to N34.19 billion, while underwriting profit stood at N1.18 billion.
According to a statement by the company, given the potential of reinsurance underwriting business, the composition and structure of earnings reflect the benefits of the groups geographically diversified operations.
This, according to the company, gives it flexibility in generation of topline, enabling it to offset the impact of localized adverse claims experience with better quality premiums from other regions, and, broad asset mix and investment management prowess, that smoothens the volatility of underwriting earnings.
The Group Managing Director, Dr. Femi Oyetunji, said: “Market and business-cycle insight are key. It’s about deploying the right strategy and having the right operational balance. We have resources with deep local knowledge of the diverse environmental dynamics across Africa, with strong technical capabilities to achieve sustainable positive outcomes in both our underwriting and asset management activities.“Our Group has once again shown resilience with our teams optimizing production and maximizing return on investments.”
“Group top-line growth was driven by its deepening pan-African presence. From a segment perspective Southern Africa, Eastern Africa, Central Africa and Francophone Western Africa grew at strong double-digit rates of 48 per cent, 25 per cent, 24 per cent and 12 per cent respectively, while Northern Africa and Anglophone Western Africa grew by six per cent and 4 per cent per cent respectively.
“The firm’s Product mix remained stable with Fire and Engineering accounting for 54 per cent, followed by General Accident at 16 per cent, Life at 12 per cent, Energy at 8 per cent, Marine at seven per cent and Liability accounting for five per cent the gross written premium.
“Going forward, the work of orchestrating the strengthening of our regional operations persists with a focus on continuous renewal of our talent base, our solutions offering, our operating model, our core processes and the technology we deploy, in order to embed the assimilation of our brand and our distinctive value proposition into the evolving, and increasingly sophisticated African market.”
“In 2018, Continental Reinsurance completed the incorporation and capitalization of a subsidiary office for its CIMA region. “Based on strategic priorities, we have so far successfully rolled out fully-fledged subsidiaries in three regions with initiatives underway to execute in the remaining one. Localization has hitherto facilitated better synergies and market strength and translated to strong growth. We expect this to be replicated in the CIMA region.
“The Company manages its Anglophone Western African business through a branch office in its head office in Nigeria, its subsidiary based in Botswana handles its Southern African operations, the Kenya subsidiary handles the Eastern operations, while its Tunis office caters for the Northern African/Maghreb region. The CIMA region is catered for by offices in Abidjan and Douala.”
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