Continental Reinsurance Plc, has announced N17.5 billion gross premium Income for the third quarter 2016 business period.
This represents 16 percent rise from N15.1 billion gross premium income written by the company in the corresponding period in 2015.
The Group Managing Director of Continental Re, Dr. Femi Oyetunji, who disclosed this in a statement made available to THISDAY said : “Growth opportunities and challenges continue to vary widely across our markets, while short-term risks have introduced setbacks in certain countries – fundamentally altering the pace of growth. In line with the company’s strategy, progress continues to be spurred by our diversified presence across the continent,” he stated.
He said the company recorded an underwriting profit of N746 million in 2016, a decrease of 42 percent from N1.28billion in third quarter 2015.
He explained that the modest outcome was primarily caused by the impact of a few large claims that compromised profit expectations.
Announcing the company’s other financial results within the same period, Oyetunji stated: “Investment and other income stood at N5.1 billion, a 212 percent growth year-on-year.
“The significant growth was partially attributed to unrealised gains on hard currency assets as a result of foreign exchange movements following the sharp devaluation of the Naira. Profit before tax was N5.03billion, (2015: N2.07billion), an increase of 143 percent”, he stated.
He however said African continent, the main market serviced by the company is still vulnerable to external shocks, observing that the slowdown of the global economy has dampened Africa’s growth prospects.
He said notwithstanding upsets in some of the markets, the Company is poised to continue along a positive growth trajectory. “Underpinning the Company’s growth prospects is the diversification business model that offsets increased competition and the influx of international companies, particularly from developed countries.”
“We remain intensely focused on maintaining underwriting discipline and our focus on profitability over growth to further strengthen the Company he stated.”
Oyetunji recalled that in the month of October 2016, global rating agency, A.M. Best affirmed the Continental Re financial strength rating of B+ (Good) and the long-term issuer credit rating of “bbb-“, adding the outlook of the credit ratings was stable.