- Continental Re’s Gross Premium Rises by 27%
Continental Reinsurance Plc said the group’s consolidated gross premium rose by 27 per cent from N15.19bn in the second quarter of 2017 to N19.26bn in the same corresponding period of 2018.
According to a statement from the group, the good momentum in volume growth is a reflection of a supportive market environment.
It stated, “Despite a competitive pricing environment, higher frictional costs and a higher claims ratio, 2017 underwriting performance, although 36 per cent lower, remains strong due to tighter portfolio management. Claims incurred amounted to N6.76bn compared to N3.52bn, with the incurred loss ratio deteriorating from 36 per cent to 46 per cent.”
Continental Re’s negative technical performance factors were partially offset by positive performance on investments, at N1.23bn, slightly lower by six per cent, cost savings and efficiency improvements, it stated.
It added that the company continued to enjoy a highly favourable 91 per cent combined ratio.
Its profit before tax of N3.24bn, representing a four per cent modest year-on-year growth, was given 31 per cent higher than the budget.
Shareholders’ fund improved by 24 per cent to N25.77bn from N 20.77bn during the same period in 2017.
The Group Managing Director, Dr Femi Oyetunji, stated, “We are pleased with our value creation evolution in the first half of 2018. Claims settlement excellence remains our key value proposition. We will continue with our efforts to increase our internal capacity and implement quality assurance measures that underpin the superior client experience we are known for.”
With a diverse and dedicated workforce, Continental Re stated that it was committed to implementing its 2020 strategy that complemented Africa’s aspirations for higher insurance penetration and enhanced value for its shareholders.
The group said it had put in place measures to improve revenue while optimising costs and anticipating the 2018 performance to be in line with the budget projections.
The group was also said to be on course to complete the ongoing construction of its headquarters building by December 2018.
Oyetunji stated, “One thing is certain; we are adapting quickly to changing market conditions and the company has built strategic momentum to deliver solid results. We have learned over the years that our defining characteristic is that we are a responsive partner and, on this premise, our year-end expectations for growth and profitability remain unchanged.”