Insurance

Continental Reinsurance posts N19.7bn GPI

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Chuks Udo Okonta

Continental Reinsurance Plc reported profit before tax of N2.92billion in 2015, up from N1.59billion the previous year, an increase of 83.61%. its Gross premium income was N19.7billion, up from N16.4billion in 2014. Shareholders’ dividend payout has also grown at an annual growth rate of 12% p.a. over the last 5 years.

The firm disclosed this at its 29th Annual General Meeting.

Continental Reinsurance currently operates from six strategic locations across Africa through a combination of regional and subsidiary offices. Although the contribution from the Lagos office grew by 10% year on year, its contribution to the Group constituted 54% of the total Non-Life business, in 2015 down from 60% in 2014. This reflects ongoing success in the strategy to pursue growth in new territories thereby reducing concentration in the Nigerian market.

Mrs. Nadia Fettah-Alaoui, Chairman of Continental Reinsurance, said, “We are pleased with our performance over the past year. I am confident that we have the right team that will continue to provide credible services to our clients.”

Dr. Femi Oyetunji, Group Managing Director/CEO said, “We maintain a firm commitment to grow our Company sustainably through volume growth, improved operational efficiencies, and development of critical skills. This bolsters our confidence in our optimism that we will continue to deliver top and bottom line growth on a sustained basis for our shareholders and other stakeholders.”

Dr. Oyetunji thanked shareholders and Board members for their support adding that the Company was in another challenging year, because of the poor economic performance seen in most African countries mostly due to low commodity prices and volatility from dollars interest rate. In the insurance and reinsurance space, competition is steeper and the excess capacity of Europe, the US and Asia is now targeting markets across Africa. Currency risk and regulatory risk have become top of mind issues, he remarked.

He further said that the Board and Management of Continental Re are finalizing a strategic plan to strengthen the Company, to ensure it increases its market share and continue to provide credible reinsurance security and services to clients and sustainable value to shareholders.

Continental Reinsurance also announced the second edition of the Pan-African Re/Insurance Journalism Awards. The competition, open to both English and French-speaking journalists, recognises the outstanding work of Africans who cover the insurance and reinsurance sector across the continent. It was launched in 2015. The winners of the first edition were announced during an award ceremony held in the Seychelles in April this year.

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