Continental Reinsurance Plc said it has recorded a gross premium income to the tune of N15.86 billion for the financial year ended 31st December, 2013. Representing a surge of 28 per cent to when compared with N12.40 billion recorded in the comparable period of 2012 .
The firms non-life and life businesses grew by 32 per cent and 11 per cent respectively, while total comprehensive income grew by 19 per cent from N1.75bn in 2012 to N2.09bn in 2013.
The Managing Director, Continental Re, Dr Femi Oyetunji, while commenting on the company performance stated “It is to the great credit of our management team and to the entirety of our staff that the company continues to grow its market share in key markets while adhering to prudent underwriting practices. The substantial growth in our non-life and life business is also a result of the company’s five-year growth strategy assisted by the economic growth in many African countries.”
The firm is recommending a cash dividend of 11 kobo per share for the 2013 financial year, a 10 per cent increase from the previous financial year.
Its profit before tax rose by five per cent to N2.23bn in 2013 from N2.13bn in previous year, while profit after tax stood at N 1.75bn which was higher than last year’s figure of N1.73bn.
Retrocession premium during the period under review was N1.69bn reflecting a retrocession ratio of 10.6 per cent, which is lower than the previous period of 12.5 per cent.
The firm’s loss ratio remained unchanged for both years at 47 per cent.
Net acquisition expenses ratio during the year was 29 per cent, which was marginally higher than last year’s figure of 28 per cent.
Management and administrative expenses increased by 16 per cent from N1.65bn in 2012 to N1.91bn in 2013, partly due to the recognition of one-time costs related to retiring and departing employees.
Underwriting profit increased by 25 per cent from N1.35bn in 2012 to N1.68bn in 2013, mainly due to a higher growth in premium than the increase in combined costs. The 2013 underwriting profit ratio as a percentage of gross premium income remained at 11 per cent.
Investment income in 2013 was N1.61bn, which was higher than previous year’s figure of N1.46bn by 10 per cent due to an improvement in the investment climate.
Total comprehensive income grew by 19 per cent from N1.75bn in 2012 to N2.09bn in 2013.
In addition to the two regional offices in Lagos, Nigeria and Douala, Cameroun and the Nairobi, Kenya subsidiary, Continental Re also operated from the Abidjan, Côte d’Ivoire office in 2013 to cover Francophone West Africa (previously covered by the Douala office).
In the last quarter of 2013, the company got regulatory approval for the Tunis office to cover North Africa. The office, which has since started operations fully, will be reported in 2014. Continental Re also obtained a license to operate in Gaborone, Botswana and will commence operations in this market this year.
“The success of Continental Re’s geographical expansion strategy, as confirmed by our performance in 2013, has helped to further deepen penetration in our markets as well as spreading risks,” Oyetunji stated.
He said Continental Reinsurance is determined to drive sustained growth and profitability and is optimistic of better performance in 2014.
“We are ready to meet the challenges ahead and to take advantage of new and existing opportunities. I am confident that the group is positioned to continue to deliver strong profit and dividend growth for many years to come,” he said.