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Chuks Udo Okonta
Continental Reinsurance Plc has taken up a 40 per cent minority stake in its Botswana subsidiary (Continental Reinsurance Ltd), giving the company a 100 percent holding of the issued ordinary share capital in the local unit.
The acquisition was conducted through its holding company, CRe African Investments Limited, from Botswana Insurance Company Ltd (BIC). This places Continental’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 stakeholders,” it said.
Commenting on the acquisition, Group Managing Director Dr. Femi Oyetunji said the acquisition means not only growth in economic size, but also presents the company with an opportunity to enhance its strategic influence and broaden market appeal.
In its half-year 2020 report, Continental Reinsurance reported strong growth across all key metrics. Gross premium income rose to ₦26.8 billion ($71.7 million), showing a 27 percent growth from 2019. Also, underwriting profit grew by 442 percent at ₦2.7 billion ($6.9 million) from (₦457 million/$1.3 million) in 2019.
Investment and other income grew 30 percent at ₦1.4 billion/$4.6 million from ₦1.2 billion/$3.6 million) in 2019, while profit before tax recorded a 300 percent increase at ₦4.4 billion/$12.3million from (₦1.1 billion/$3.1million) the previous year.
As a result of the profit recorded, the company remains fully committed to supporting its partners and the wider community through the pandemic, by prioritizing financial donations through industry bodies in its various jurisdictions for sustainable and equitable use for the benefit of local citizens, it said.
According to Dr. Oyetunji, “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.”