Continental Reinsurance Plc has raised its stake in Continental Reinsurance Ltd (Botswana) to 100 per cent after acquiring a minority 40 per cent stake in the company, through its holding company, CRe African Investments Limited, from Botswana Insurance Company Ltd (BIC).
The acquisition came even as the pan-African firm reported a 300 per cent growth in profit before tax (PBT) to N4.4 billion for the half year ended June 30, 2020, compared with N1.1 billion in 2019.
Commenting on the acquisition, Group Managing Director, Continental Reinsurance, Dr. Femi Oyetunji, said: “The acquisition means not only growth in economic size, but also presents us with an opportunity to enhance our strategic influence and broaden our market appeal through the expansion of stakeholder segments that we actively interact with.”
“Building on our talent growth and diversity strategy, we have appointed Mr Francis Nzwili, previously with our Nairobi subsidiary, as Managing Director of the Botswana business. Francis comes on board with a wealth of experience in underwriting and business development that significantly complements the strength of the existing team,” he added.
According to him, the acquisition entrenches Continental Re’s stature as a strong pan-African reinsurance brand committed to delivering value to its customers and long-term sustainable profit growth and returns for all internal and external stakeholders.
Meanwhile, group has reported gross premium income of N26.8 billion, reflecting a 27 per cent growth over 2019. Investment and other income stood at N1.4 billion, showing 30 per cent year, while PBT rose from N1.1 billion to N4.4 billion.
“The strong contribution to the Group’s half-year results from our entire network with offices in Anglophone West Africa, East Africa, Southern Africa, CIMA and North Africa, is a testament to the resilience wrought by our operating model that is anchored on geographic diversity. We shall continue to adapt and improve this model as we strive for superior efficiency,” Oyetunji said.
According to him, these results come as they brace for the impact of the Covid-19 crisis that continues to unfold, noting that they remain cautiously optimistic regarding prospects for the year.
“In conjunction with our partners, we look forward to better times ahead. We remain fully committed to playing our part in supporting our partners and the wider community through the pandemic, including prioritizing financial donations through industry bodies in our various jurisdictions for sustainable and equitable use for the benefit of local citizens,” he said.