Despite the lull in the economy, Continental Reinsurance Plc achieved modest success at the outgoing business year.
At the just concluded 32nd Annual General Meeting of shareholders, the company reported its full-year results for 2018 that show a 22% increase in pretax profit. Gross premium income increased by a sturdy 15% to N34.19billion while underwriting profit stood at N1.18billion.
Pre-tax profit rose to N4.36billion in 2018, from to N3.57billion in 2017 with investment income growing strongly by 44% to N5.36billion.
In the view of Chief Ajibola Ogunshola, Chairman of Continental Reinsurance Plc, said, “For the past several years, the global reinsurance sector has weathered unfavorable and continuously changing business conditions. The challenges have included a prolonged soft reinsurance pricing cycle, heightened competition, limited organic growth opportunities, a record influx of alternative capital, low interest rates, mergers and acquisitions, and large catastrophe losses. Against this backdrop, reinsurers are trying to pull whatever levers they can, not only to remain relevant but also to sustain profitability.”
However, the AGM decided that no dividend is distributed by a resolution of the AGM.
For 2018, the composition and structure of Continental Re’s earnings reflect the benefits of the Groups geographically diversified operations that give it flexibility in generation of topline, enabling it to offset the impact of localised adverse claims experience with better quality premiums from other regions, and, broad asset mix and investment management prowess that smoothens the volatility of underwriting earnings.
Group topline growth was driven by its deepening pan-African presence. From a segment perspective Southern Africa, Eastern Africa, Central Africa and Francophone Western Africa grew at strong double-digit rates of 48%, 25%, 24% and 12% respectively, whilst Northern Africa and Anglophone Western Africa grew by 6% and 4% respectively.
Product mix remained stable with Fire and Engineering accounting for 54%, followed by General Accident at 16%, Life at 12%, Energy at 8%, Marine at 7% and Liability accounting for 5% of the gross written premium.
Dr. Femi Oyetunji, Group MD/CEO remarked, “Going forward, the work of orchestrating the strengthening of our regional operations persists with a focus on continuous renewal of our talent base, our solutions offering, our operating model, our core processes and the technology we deploy, in order to embed the assimilation of our brand and our distinctive value proposition into the evolving, and increasingly sophisticated African market.”