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Continental Re’s premium rises by 28%

By on July 15, 2014

Continental Reinsurance Plc has said its gross premium increased by 28 per cent to N15.86bn in 2013 from N12.40bn in the previous financial period.

The company said in a statement that the non-life and life businesses grew by 32 per cent and 11 per cent, respectively, while the total comprehensive income grew by 19 per cent from N1.75bn in 2012 to N2.09bn in 2013.

Commenting on the results, the Managing Director, Continental Re, Dr. Femi Oyetunji, said, “It is to the great credit of our management team and the entirety of our staff that the company continues to grow its market share in key markets, while adhering to prudent underwriting practices.

“The substantial growth in our non-life and life businesses is also a result of the company’s five-year growth strategy assisted by the economic growth in many African countries.”

Due to the impressive performance, the management recommended a cash dividend of 11 kobo per share for the 2013 financial year, a 10 per cent increase from the previous financial year’s dividend payment.

Its profit before tax rose by five per cent to N2.23bn in 2013 from N2.13bn in the previous year, while the profit after tax stood at N 1.75bn, which was higher than the preceding year’s figure of N1.73bn.

Retrocession premium during the period under review was N1.69bn, reflecting a retrocession ratio of 10.6 per cent, which is lower than the 12.5 per cent recorded in the previous year.

According to the statement, the firm’s loss ratio remained unchanged for both years at 47 per cent.

The net acquisition expenses ratio during 2013 was 29 per cent, which was marginally higher than the 2012 figure of 28 per cent.

Management and administrative expenses increased by 16 per cent from N1.65bn in 2012 to N1.91bn in 2013, partly due to the recognition of one-time costs related to retiring and departing employees.

Underwriting profit increased by 25 per cent from N1.35bn in 2012 to N1.68bn in 2013, mainly due to a higher growth in premium than the increase in combined costs. The 2013 underwriting profit ratio as a percentage of gross premium income remained at 11 per cent.

Investment income in 2013 was N1.61bn, which was higher than the previous year’s figure of N1.46bn by 10 per cent, due to an improvement in the investment climate.

Continental Re said its total comprehensive income grew by 19 per cent from N1.75bn in 2012 to N2.09bn in 2013.

In addition to the two regional offices in Lagos, Nigeria, and Douala, Cameroon, Nairobi, Kenya subsidiary, Continental Re also operated from the Abidjan, Côte d’Ivoire office in 2013 to cover Francophone West Africa (previously covered by the Douala office).

In the last quarter of 2013, the company got regulatory approval for the Tunis office to cover North Africa. The office, which has since started operations, will be reported in 2014.

 

 

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