Continental Reinsurance Plc’s has said that in the first nine months of the current business year, it successfully grew its gross premium income by 25 per cent to NGN 21.86bn in the nine months financial period of 2017, higher than the N17.51bn in the corresponding period of 2016.
The company’s underwriting profit grew by 178 per cent to NGN 2.08bn from N746.72m in the period under review.
The company noted that this was a reflection of the targeted underwriting actions during the year including increased underwriting discipline.
A.M. Best has also affirmed its Financial Strength Rating of B+ (good) and the Long-Term Issuer Credit Rating of â€œbbb,â€ showing the outlook of these Credit Ratings are stable.
The results, according to the company, were buoyed by a 77 per cent increase in investment and other income which stood at N 1.9billion from N1.07billion despite a 36 per cent decline in profit before tax, resulting from the impact of foreign exchange movement in the period under review.
Group Managing Director/Chief Executive Officer, Dr. Femi Oyetunji, commenting on the performance said: â€œWe continuously monitor localised cycles of growth or challenges across our markets and adjust our business model to adapt, as each of our regional offices and subsidiaries play a significant role in any given reporting period. Our primary focus of improving underwriting fundamentals and capital management to ensure we meet the present and future needs of our business rests.â€
According to the A.M. Best report, the rating reflects Continental Re’s very strong balance sheet strength, adequate operating performance and neutral business profile.
The report further noted that the company’s balance sheet strength was supported by a strong level of risk-adjusted capitalisation, which A.M. Best expects to remain at a very strong level over the medium term.
According to the report, claims expenses reduced by four per cent to N7.99billion to N8.36billion in September last year, while reinsurance reserves rose by six per cent to N14.54bn from N13.7bn in third quarter of 2016.
The company disclosed that its profit before tax stood at N3.23billion at the end of September this year, from N5.03billion in the corresponding period of 2016, while profit after tax was N2.49billion from N3.75billion in the period under review.
Continental Re said that construction of its headquarters in Lagos was underway after a groundbreaking ceremony.
It said the new headquarters will be a state of the art landmark building with ultra-modern and eco-friendly features.